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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 |
333-72213
Florida | 59-2022148 | |
(State of Organization) | (IRS Employer Identification Number) | |
2100 West Cypress Creek Road | ||
Ft. Lauderdale, Florida | 33309 | |
(Address of Principal Executive Office) | (Zip Code) |
None
Securities registered pursuant to Section 12(g) of the Act:
Class A Common Stock $.01 par Value | NASDAQ National Market | |
Class B Common Stock $.01 par Value | OTC BB | |
(Title of Class) | (Name of Exchange on Which Registered) |
Large accelerated filer o | Accelerated filer þ | Non-accelerated filer o |
Class B Common Stock of $.01 par value, 7,136,375 shares outstanding.
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• | the impact of economic, competitive and other factors affecting the Company and its subsidiaries, and their operations, markets, products and services; | ||
• | that BFC may not have sufficient available cash to make desired investments; | ||
• | that BFC shareholders’ interests may be diluted in transactions utilizing BFC stock for consideration; | ||
• | that appropriate investment opportunities on reasonable terms and at reasonable prices may not be available; | ||
• | that the performance of those entities in which investments are made may not be as anticipated; and | ||
• | that BFC will be subject to the unique business and industry risks and characteristics of each entity in which an investment is made. |
• | the impact of economic, competitive and other factors affecting BankAtlantic Bancorp and BankAtlantic’s and their operations, markets, products and services; | ||
• | credit risks and loan losses and the related sufficiency of the allowance for loan losses; | ||
• | changes in interest rates and the effects of, and changes in, trade, monetary and fiscal policies and laws including the impact on the Bank’s net interest margin; | ||
• | adverse conditions in the stock market, the public debt market and other capital markets and the impact of such conditions on our activities and the value of our assets; | ||
• | BankAtlantic’s seven-day banking initiative, marketing initiatives, branch expansion, branch renovation and other growth initiatives not resulting in continued growth of low cost deposits or otherwise not producing results which justify their costs; | ||
• | the impact of periodic testing of goodwill and other intangible assets for impairment as well as the $10 million reserve established during the 2005 fourth quarter may not be sufficient to cover the fines, penalties or expenses associated with any resolution of AML-BSA compliance matters; | ||
• | the results or performance derived or implied, directly or indirectly from the estimates and assumptions, are based on our beliefs and may not be accurate; and | ||
• | past performance, actual or estimated new account openings and growth rates may not be indicative of future results. |
• | its operations, products and services, changes in economic or regulatory policies, | ||
• | its ability to recruit and retain financial consultants, | ||
• | the volatility of the stock market and fixed income markets and its effects on the volume of its business and the value of its securities positions and portfolio, as well as its revenue mix, and the success of new lines of business; and | ||
• | additional risks and uncertainties that are subject to change and may be outside of Ryan Beck’s control. |
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• | the impact of economic, competitive and other factors affecting Levitt and its operations, including the impact of hurricanes and tropical storms in the areas in which it operates; | ||
• | the market for real estate generally and in the areas where Levitt has developments, including the impact of market conditions on the Levitt’s margins; | ||
• | delays in opening planned new communities; | ||
• | the availability and price of land suitable for development in our current markets and in markets where we intend to expand; | ||
• | shortages and increased costs of construction materials and labor; | ||
• | the effects of increases in interest rates; | ||
• | our ability to successfully complete land acquisitions necessary to meet our growth objectives; | ||
• | our ability to obtain financing for planned acquisitions; | ||
• | our ability to successfully expand into new markets and the demand in those markets meeting the Levitt’s estimates; | ||
• | Levitt’s ability to realize the expected benefits of its expanded platform organizational, infrastructure and growth initiatives and strategic objectives; | ||
• | environmental factors, the impact of governmental regulations and requirements (including delays in obtaining necessary permits and approvals as a result of the reallocation of government resources based on hurricane related issues in the areas in which Levitt operates); | ||
• | Levitt’s ability to timely deliver homes from backlog and successfully manage growth; and | ||
• | Levitt’s success at managing the risks involved in the foregoing. |
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Percent | ||||||||||||
Shares | Percent of | of | ||||||||||
Owned | Ownership | Vote | ||||||||||
BankAtlantic Bancorp | ||||||||||||
Class A Common Stock | 8,329,236 | 14.90 | % | 7.90 | % | |||||||
Class B Common Stock | 4,876,124 | 100.00 | % | 47.00 | % | |||||||
Total | 13,205,360 | 21.71 | % | 54.90 | % | |||||||
Levitt | ||||||||||||
Class A Common Stock | 2,074,243 | 11.15 | % | 5.91 | % | |||||||
Class B Common Stock | 1,219,031 | 100.00 | % | 47.00 | % | |||||||
Total | 3,293,274 | 16.62 | % | 52.91 | % |
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December 31, 2005 | December 31, 2004 | December 31, 2003 | ||||||||||||||||||||||
Full-time | Part-time | Full-time | Part-time | Full-time | Part-time | |||||||||||||||||||
BFC | 20 | 1 | 16 | 1 | 7 | 1 | ||||||||||||||||||
BankAtlantic Bancorp | 2,921 | 423 | 2,492 | 325 | 2,312 | 235 | ||||||||||||||||||
Levitt | 639 | 22 | 526 | 32 | 353 | 34 | ||||||||||||||||||
Total | 3,580 | 452 | 3,034 | 358 | 2,672 | 270 | ||||||||||||||||||
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• | attracting checking and savings deposits from individuals and business customers, | ||
• | originating commercial real estate, business, consumer and small business loans, | ||
• | purchasing wholesale residential loans from third parties, | ||
• | investing in mortgage-backed securities, tax certificates and other securities. |
• | Continuing the “Florida’s Most Convenient Bank” Initiative.BankAtlantic began its “Florida’s Most Convenient Bank” initiative in 2002. This initiative includes offering free checking, seven-day banking, extended lobby hours, including some stores open from 7:30am until midnight, a 24-hour customer service center and other new products and services that are an integral part of BankAtlantic’s strategy to position itself as a customer-oriented bank and increase its low cost deposit accounts. BankAtlantic continues to implement marketing programs in its stores that include sales training programs, outbound telemarketing and incentive programs that reward banking personnel who produce profitable business. |
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• | Increasing Low Cost Deposits.BankAtlantic’s low cost deposits are comprised of demand deposit accounts, NOW checking accounts and savings accounts. From December 31, 2001, when the initiative was launched, to December 31, 2005, the balances of BankAtlantic’s low cost deposits increased 250% from approximately $600 million to approximately $2.1 billion. These low cost deposits represented 56% of BankAtlantic’s total deposits at December 31, 2005, compared to 26% of total deposits at December 31, 2001. BankAtlantic intends to continue to seek to increase its low cost deposits through strong sales and marketing efforts, new product offerings, commitment to customer service and the “Florida’s Most Convenient Bank” initiative. | ||
• | Growing the Loan Portfolio while Concentrating on Core Lending Competencies. BankAtlantic intends to grow its core commercial and retail banking business with an emphasis on generating commercial real estate, small business, and consumer loans. BankAtlantic attributes its success in these lending areas to several key factors, including disciplined underwriting and expertise in its markets. Loan balances and total earning assets are down from mid -2005 resulting from our strategy of limiting earning asset growth. The decline in loans is the result of a decision to delay purchases of residential real estate mortgages in light of the relative flatness of the yield curve and the run-off in the high rise condominium portfolio where we decided to reduce our exposure. BankAtlantic intends to continue this strategy of limiting earning asset growth in a flat to inverted yield curve environment. BankAtlantic intends to continue to limit activities in non-core lending areas, such as credit card, international, non-mortgage syndication and indirect lending. | ||
• | Expanding the Retail Network.BankAtlantic intends to grow its retail network both internally, through a branding initiative and de novo expansion, and externally through acquisitions which are consistent with BankAtlantic’s growth strategy. BankAtlantic generally seeks to expand into relatively fast growing and high deposit level markets within Florida. We anticipate opening approximately 14 stores in 2006 while completing the renovation of the interior of all existing stores to provide a consistent design. | ||
• | Maintaining its Strong Credit Culture.BankAtlantic believes it has put in place stringent underwriting standards and has developed and instituted credit training programs for its banking officers which emphasize underwriting and credit analysis. It has also developed systems and programs which it believes will enable it to offer sophisticated products and services without exposing BankAtlantic to unnecessary credit risk. |
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As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||||||||||||||||||||||
Amount | Pct | Amount | Pct | Amount | Pct | Amount | Pct | Amount | Pct | |||||||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||||||||||
Residential | $ | 2,043 | 44.20 | 2,066 | 45.35 | 1,344 | 37.00 | 1,378 | 40.30 | 1,112 | 39.76 | % | ||||||||||||||||||||||||||||
Home Equity | 514 | 11.12 | 457 | 10.03 | 334 | 9.19 | 262 | 7.65 | 167 | 5.96 | ||||||||||||||||||||||||||||||
Construction and development | 1,340 | 28.99 | 1,454 | 31.92 | 1,345 | 37.05 | 1,266 | 37.00 | 1,144 | 40.93 | ||||||||||||||||||||||||||||||
Commercial | 1,060 | 22.93 | 1,075 | 23.61 | 1,064 | 29.30 | 755 | 22.09 | 522 | 18.67 | ||||||||||||||||||||||||||||||
Small business | 152 | 3.29 | 124 | 2.72 | 108 | 2.97 | 94 | 2.76 | 36 | 1.28 | ||||||||||||||||||||||||||||||
Loans to Levitt Corporation | — | 0.00 | 9 | 0.19 | 18 | 0.50 | — | — | — | — | ||||||||||||||||||||||||||||||
Other loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial business | 87 | 1.88 | 85 | 1.88 | 81 | 2.22 | 82 | 2.40 | 76 | 2.72 | ||||||||||||||||||||||||||||||
Small business — non-mortgage | 83 | 1.80 | 67 | 1.46 | 52 | 1.43 | 49 | 1.45 | 34 | 1.23 | ||||||||||||||||||||||||||||||
Due from foreign banks | — | 0.00 | — | 0.00 | — | — | — | — | 1 | 0.05 | ||||||||||||||||||||||||||||||
Consumer | 27 | 0.59 | 18 | 0.41 | 22 | 0.60 | 25 | 0.73 | 26 | 0.92 | ||||||||||||||||||||||||||||||
Residential loans held for sale | 3 | 0.07 | 5 | 0.10 | 2 | 0.06 | — | — | 5 | 0.17 | ||||||||||||||||||||||||||||||
Discontinued loan products | 1 | 0.02 | 8 | 0.18 | 35 | 0.98 | 71 | 2.08 | 153 | 5.48 | ||||||||||||||||||||||||||||||
Total | 5,310 | 114.89 | 5,368 | 117.85 | 4,405 | 121.30 | 3,982 | 116.46 | 3,276 | 117.17 | ||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||
Undisbursed portion of loans in process | 649 | 14.04 | 768 | 16.86 | 728 | 20.05 | 512 | 14.97 | 434 | 15.53 | ||||||||||||||||||||||||||||||
Unearned discounts (premiums) | (2 | ) | -0.04 | (1 | ) | (0.02 | ) | — | (0.01 | ) | 3 | 0.09 | 1 | 0.05 | ||||||||||||||||||||||||||
Allowance for loan losses | 41 | 0.89 | 46 | 1.01 | 46 | 1.26 | 48 | 1.40 | 45 | 1.59 | ||||||||||||||||||||||||||||||
Total loans receivable, net | $ | 4,622 | 100.00 | 4,555 | 100.00 | 3,631 | 100.00 | 3,419 | 100.00 | 2,796 | 100.00 | % | ||||||||||||||||||||||||||||
1) | Includes syndication, lease financings and indirect consumer loans, which BankAtlantic ceased originating in prior periods. |
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U.S. | Corporate | |||||||||||||||||||||||||||
Treasury | Mortgage- | Bond | Weighted | |||||||||||||||||||||||||
and | Tax | Tax-Exempt | Backed | and | Average | |||||||||||||||||||||||
Agencies | Certificates | Securities | Securities | Other | Total | Yield | ||||||||||||||||||||||
December 31, 2005 | ||||||||||||||||||||||||||||
Maturity: (1) | ||||||||||||||||||||||||||||
One year or less | $ | — | $ | 163,726 | $ | — | $ | — | $ | 100 | $ | 163,826 | 7.91 | % | ||||||||||||||
After one through five years | 1,000 | — | 8,161 | 79,665 | 485 | 89,311 | 4.33 | |||||||||||||||||||||
After five through ten years | — | — | 121,072 | 508 | — | 121,580 | 4.09 | |||||||||||||||||||||
After ten years | — | — | 259,333 | 301,367 | — | 560,700 | 5.20 | |||||||||||||||||||||
Fair values (2) | $ | 1,000 | $ | 163,726 | $ | 388,566 | $ | 381,540 | $ | 585 | $ | 935,417 | 5.45 | % | ||||||||||||||
Amortized cost (2) | $ | 998 | $ | 163,726 | $ | 392,130 | $ | 387,178 | $ | 585 | $ | 944,617 | 5.20 | % | ||||||||||||||
Weighted average yield based on fair values | 2.11 | % | 7.91 | % | 5.15 | % | 4.71 | % | 3.83 | % | 5.45 | % | ||||||||||||||||
Weighted average maturity (yrs) | 4.2 | 1.0 | 11.93 | 20.05 | 3.04 | 13.34 | ||||||||||||||||||||||
December 31, 2004 | ||||||||||||||||||||||||||||
Fair values (2) | $ | — | $ | 166,731 | $ | 332,605 | $ | 500,517 | $ | 585 | $ | 1,000,438 | 5.37 | % | ||||||||||||||
Amortized cost (2) | $ | — | $ | 166,731 | $ | 332,024 | $ | 498,504 | $ | 585 | $ | 997,844 | 5.50 | % | ||||||||||||||
December 31, 2003 | ||||||||||||||||||||||||||||
Fair values (2) | $ | — | $ | 190,906 | $ | — | $ | 338,751 | $ | 585 | $ | 530,242 | 5.90 | % | ||||||||||||||
Amortized cost (2) | $ | — | $ | 190,906 | $ | — | $ | 332,898 | $ | 585 | $ | 524,389 | 6.40 | % | ||||||||||||||
(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 1 to 2 years). | |
(2) | Equity and tax exempt securities held by the parent company with a cost of $95.1 million, $50.7 million and $17.6 million and a fair value of $103.2 million, $53.7 million, $20.9 million, at December 31, 2005, 2004 and 2003, respectively, were excluded from the above table. |
December 31, 2005 (1) | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Appreciation | Depreciation | Fair Value | |||||||||||||
Tax certificates and investment securities: | ||||||||||||||||
Tax certificates: | ||||||||||||||||
Cost equals market | $ | 163,726 | $ | — | $ | — | $ | 163,726 | ||||||||
Investment securities: | ||||||||||||||||
Cost equals market | 6,183 | — | — | 6,183 | ||||||||||||
Market over cost | 57,932 | 313 | — | 58,245 | ||||||||||||
Cost over market | 129,803 | — | 1,428 | 128,375 | ||||||||||||
Securities available for sale: | ||||||||||||||||
Investment securities: | ||||||||||||||||
Cost equals market | 585 | — | — | 585 | ||||||||||||
Market over cost | 46,327 | 327 | — | 46,654 | ||||||||||||
Cost over market | 152,883 | 2,774 | 150,109 | |||||||||||||
Mortgage-backed securities : | ||||||||||||||||
Market over cost | 74,215 | 1,547 | — | 75,762 | ||||||||||||
Cost over market | 312,963 | — | 7,185 | 305,778 | ||||||||||||
Total | $ | 944,617 | $ | 2,187 | $ | 11,387 | $ | 935,417 | ||||||||
1) | The above table excludes Parent Company investment securities and securities available for sale with a cost of $6.8 million and $88.4 million, respectively, and a fair value of $7.6 million and $95.7 million, respectively, at December 31, 2005. |
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• | Investment Banking. Ryan Beck has a well established investment banking group primarily focused on financial institutions. Recently, Ryan Beck’s strategy has been to diversify its operations through the addition of investment bankers and capital markets expertise focused on other sectors, such as consumer products and services, real estate |
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investment trusts and business services. Ryan Beck’s investment banking activities include managing underwritten public offerings, serving as placement agent on institutional private financings and acting as an advisor on mergers and acquisitions. |
• | Private Client Group. In April 2002, Ryan Beck acquired certain of the assets and assumed certain of the liabilities of Gruntal & Co., LLC. This transaction enabled Ryan Beck to significantly increase its private client group revenues. The table below shows Ryan Beck’s private client group statistics before the Gruntal transaction and at December 31, 2005. |
December 31, 2005 | December 31, 2001 | |||||||
Financial Consultants | 407 | 80 | ||||||
Customer Accounts | 135,000 | 27,000 | ||||||
Customer Assets | $18.2 billion | $4.0 billion |
• | Capital Markets.Ryan Beck has both equity and fixed income capital markets groups. Both groups incorporate trading, institutional sales and syndicate activities. Ryan Beck makes a market in over 500 equity securities, principally financial institution shares. Equity capital markets group also incorporates a research department with 13 publishing analysts covering 38 closed end funds and 178 companies in eight industry sectors. |
• | high net worth individuals, | ||
• | financial institutions, | ||
• | institutional clients, | ||
• | governmental and other issuers of non-taxable securities, and | ||
• | other corporate clients. |
December 31, 2005 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Carrying | Unrealized | Unrealized | Estimated | |||||||||||||
Value | Appreciation | Depreciation | Fair Value | |||||||||||||
Securities available for sale: | ||||||||||||||||
Tax exempt securities | $ | 6,229 | $ | — | $ | 21 | $ | 6,208 | ||||||||
Equity securities | 82,113 | 7,307 | — | 89,420 | ||||||||||||
Investment securities: | ||||||||||||||||
Investment securities (1) | 6,800 | 793 | — | 7,593 | ||||||||||||
Total | $ | 95,142 | $ | 8,100 | $ | 21 | $ | 103,221 | ||||||||
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December 31, 2004 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Carrying | Unrealized | Unrealized | Estimated | |||||||||||||
Value | Appreciation | Depreciation | Fair Value | |||||||||||||
Securities available for sale: | ||||||||||||||||
Tax exempt securities | $ | 20,860 | $ | $ | 24 | $ | 20,836 | |||||||||
Equity securities | 23,025 | 2,679 | — | 25,704 | ||||||||||||
Investment securities: | ||||||||||||||||
Investment securities (1) | 6,800 | 345 | — | 7,145 | ||||||||||||
Total | $ | 50,685 | $ | 3,024 | $ | 24 | $ | 53,685 | ||||||||
(1) | Investment securities consist of equity instruments purchased through private placements and are accounted for at historical cost adjusted for other-than-temporary declines in value. |
December 31, 2005 | December 31, 2004 | |||||||||||||||
Full- | Part- | Full- | Part- | |||||||||||||
Time | time | time | time | |||||||||||||
BankAtlantic Bancorp | 18 | — | 7 | — | ||||||||||||
BankAtlantic | 1,882 | 390 | 1,507 | 286 | ||||||||||||
Ryan Beck | 1,021 | 33 | 985 | 39 | ||||||||||||
Total | 2,921 | 423 | 2,499 | 325 | ||||||||||||
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• | 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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• | mortgage loans secured by residential and commercial real estate; | ||
• | commercial and consumer loans; | ||
• | certain types of debt securities; and | ||
• | certain other assets. |
• | a tangible capital requirement for savings banks to have tangible capital in an amount equal to at least 1.5% of adjusted total assets; | ||
• | a leverage ratio requirement: |
o | for savings banks assigned the highest composite rating of 1, to have core capital in an amount equal to at least 3% of adjusted total assets; or | ||
o | for savings banks 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 bank; and |
• | a risk-based capital requirement for savings banks to have capital in an amount equal to at least 8% of risk-weighted assets. |
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• | the size of the savings bank, on which the basic assessment is based; | ||
• | the savings bank’s supervisory condition, which results in an additional assessment based on a percentage of the basic assessment for any savings bank with a composite rating of 3, 4 or 5 in its most recent safety and soundness examination; and | ||
• | the complexity of the savings bank’s operations, which results in an additional assessment based on a percentage of the basic assessment for any savings bank 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 bank’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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Number of | Planned | Closed | Sold | Net Units | ||||||||||||||||||||
Communities | Units (a) | Units | Inventory | Backlog | Available | |||||||||||||||||||
Active Adult Communities | ||||||||||||||||||||||||
Current Developments (includes optioned lots) | 14 | 9,763 | 3,119 | 6,644 | 825 | 5,819 | ||||||||||||||||||
Properties Under Contract to be Acquired (b) | 2 | 1,469 | — | 1,469 | — | 1,469 | ||||||||||||||||||
Total Active Adult | 16 | 11,232 | 3,119 | 8,113 | 825 | 7,288 | ||||||||||||||||||
Family Communities | ||||||||||||||||||||||||
Current Developments (includes optioned lots) | 37 | 7,152 | 3,298 | 3,854 | 967 | 2,877 | ||||||||||||||||||
Properties Under Contract to be Acquired (b) | 12 | 2,604 | — | 2,604 | — | 2,604 | ||||||||||||||||||
Total Family | 49 | 9,756 | 3,298 | 6,458 | 967 | 4,073 | ||||||||||||||||||
TOTAL HOMEBUILDING | ||||||||||||||||||||||||
Current Developments (includes optioned lots) | 51 | 16,915 | 6,417 | 10,498 | 1,792 | 8,706 | ||||||||||||||||||
Properties Under Contract to be Acquired (b) | 14 | 4,073 | — | 4,073 | — | 4,073 | ||||||||||||||||||
TOTAL HOMEBUILDING | 65 | 20,988 | 6,417 | 14,571 | 1,792 | 12,779 | ||||||||||||||||||
(a) | Actual number of units may vary from original project plan due to engineering and architectural changes. | |
(b) | There can be no assurance that current properties under contract will be acquired. |
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Acres | Closed | Current | Non-Saleable | Saleable | Sold | Acres | ||||||||||||||||||||||||||
Acquired | Acquired | Acres | Inventory | Acres (a) | Acres (a) | Backlog | Available | |||||||||||||||||||||||||
Currently in Development | ||||||||||||||||||||||||||||||||
St. Lucie West | 1997 (b) | 1,964 | 1,960 | 4 | — | 4 | 4 | — | ||||||||||||||||||||||||
Tradition™, Florida | 1998 – 2004 | 8,246 | 1,548 | 6,698 | 2,388 | 4,310 | 234 | 4,077 | ||||||||||||||||||||||||
Tradition™, South Carolina | 2005 | 5,390 | — | 5,390 | 2,417 | 2,973 | — | 2,973 | ||||||||||||||||||||||||
Total Currently in Development | 15,600 | 3,508 | 12,092 | 4,805 | 7,287 | 238 | 7,050 | |||||||||||||||||||||||||
(a) | Actual saleable and non-saleable acres may vary from the original plan due to changes in zoning, project design, or other factors. Non-saleable acres include, but are not limited to, areas set aside for roads, parks, schools, utilities and other public purposes. | |
(b) | Land inventory as of the date of acquisition of Core Communities. |
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Number of | Total | Closed | Sold | Units | ||||||||||||||||||||
Projects | Units | Units | Inventory | Backlog | Available | |||||||||||||||||||
Currently in Development | ||||||||||||||||||||||||
Flex Commercial Developments | 2 | 46 | — | 46 | 37 | 9 | ||||||||||||||||||
Total Currently in Development | 2 | 46 | — | 46 | 37 | 9 | ||||||||||||||||||
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Full | Part | |||||||
Time | Time | |||||||
Homebuilding | 552 | 22 | ||||||
Land | 43 | 5 | ||||||
Other Operations | 45 | 1 | ||||||
Total | 640 | 28 | ||||||
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• | fail to accomplish our strategic objectives; | ||
• | not perform as expected; and | ||
• | expose us to the risks of the business that we acquire. |
• | limit the payment of dividends by BankAtlantic to BankAtlantic Bancorp; | ||
• | limit transactions between us, BankAtlantic, BankAtlantic Bancorp and the subsidiaries or affiliates of either; | ||
• | limit the activities of BankAtlantic, BankAtlantic Bancorp or us; or | ||
• | impose capital requirements on us or BankAtlantic Bancorp. |
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• | Need for additional capital in the future which might not be available; | ||
• | Changes in consumer preferences and discretionary spending; | ||
• | Ability to compete with many food service businesses; | ||
• | The availability and quality of ingredients and changes in food and supply costs could adversely affect results of operations; | ||
• | 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; | ||
• | Health concerns relating to the consumption of food products could affect consumer preferences and could negatively impact results of operation; | ||
• | Increased labor costs or labor shortages could adversely affect results of operations; | ||
• | The ability to obtain and maintain licenses and permits necessary to operate restaurants and compliance with laws could adversely affect operating results; | ||
• | Seasonal fluctuations in business could adversely impact stock price; and | ||
• | The loss of key management personnel. |
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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 if loans 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 are generally less than the yields that it earned on the prepaid loans. |
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• | the risk characteristics of various classifications of loans; | ||
• | previous loan loss experience; | ||
• | specific loans that have 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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• | the volatility and price levels of the securities markets, | ||
• | the volume, size and timing of securities transactions, | ||
• | the demand for investment banking services, | ||
• | the level and volatility of interest rates, | ||
• | the availability of credit, | ||
• | legislation affecting the business and financial communities, | ||
• | the economy in general, | ||
• | the volatility of equity and debt securities held in inventory, and | ||
• | attraction and retention of key personnel. |
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• | limit the payment of dividends by BankAtlantic to us; | ||
• | limit transactions between us, BankAtlantic and the subsidiaries or affiliates of either; | ||
• | limit our activities and the activities of BankAtlantic; or | ||
• | impose capital requirements on us. |
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• | the availability and cost of financing, | ||
• | unfavorable interest rates and increases in inflation, | ||
• | overbuilding or decreases in demand, | ||
• | changes in the general availability of land and competition for available land, | ||
• | construction defects and warranty claims arising in the ordinary course of business or otherwise, including mold related property damage and bodily injury claims and homeowner and homeowners’ association lawsuits, | ||
• | changes in national, regional and local economic conditions, | ||
• | cost overruns, inclement weather, and labor and material shortages, | ||
• | the impact of present or future environmental legislation, zoning laws and other regulations, | ||
• | availability, delays and costs associated with obtaining permits, approvals or licenses necessary to develop property, and | ||
• | increases in real estate taxes and other local government fees. |
• | shortages or increases in prices of construction materials, | ||
• | natural disasters in the areas in which we operate, | ||
• | work stoppages, labor disputes and shortages of qualified trades people, such as carpenters, roofers, electricians and plumbers, | ||
• | lack of availability of adequate utility infrastructure and services, and | ||
• | our need to rely on local subcontractors who may not be adequately capitalized or insured. |
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• | increases in interest rates, | ||
• | decreases in the availability of mortgage financing, | ||
• | increasing housing costs, | ||
• | unemployment, and | ||
• | changes in federally sponsored financing programs. |
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• | environmental matters, including the presence of hazardous or toxic substances, | ||
• | wetland preservation, | ||
• | health and safety, | ||
• | zoning, land use and other entitlements, | ||
• | building design, and | ||
• | density levels. |
• | installation of utility services such as gas, electric, water and waste disposal, | ||
• | the dedication of acreage for open space, parks and schools, | ||
• | permitted land uses, and | ||
• | the construction design, methods and materials used. |
• | establish building moratoriums, | ||
• | limit the number of homes, apartments or commercial properties that may be built, | ||
• | change building codes and construction requirements affecting property under construction, | ||
• | increase the cost of development and construction, and | ||
• | delay development and construction. |
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• | limit our ability to obtain future financing for working capital, capital expenditures, acquisitions, debt service requirements or other requirements, | ||
• | require us to dedicate a substantial portion of our cash flow from operations to payment of or on our debt and reduce our ability to use our cash flow for other purposes, | ||
• | impact our flexibility in planning for, or reacting to, the changes in our business, | ||
• | place us at a competitive disadvantage if we have more debt than our competitors, and | ||
• | make us more vulnerable in the event of a downturn in our business or in general economic conditions. |
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• | the cyclical nature of the real estate and construction industries, | ||
• | prevailing interest rates and the availability of mortgage financing, | ||
• | the uncertain timing of closings, | ||
• | weather and the cost and availability of materials and labor, | ||
• | competitive variables, and | ||
• | the timing of receipt of regulatory and other governmental approvals for construction of projects. |
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• | difficulties in assimilating acquired management and operations, | ||
• | risks associated with achieving profitability, | ||
• | the incurrence of significant due diligence expenses relating to acquisitions that are not completed, | ||
• | unforeseen expenses, | ||
• | risks associated with entering new markets in which we have no or limited prior experience, | ||
• | the potential loss of key employees of acquired organizations, and | ||
• | risks associated with transferred assets and liabilities. |
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Miami-Dade | Broward | Palm Beach | Tampa Bay | |||||||||||||
Owned full-service branches | 4 | 10 | 25 | 3 | ||||||||||||
Leased full-service branches | 9 | 14 | 6 | 7 | ||||||||||||
Total full-service branches | 13 | 24 | 31 | 10 | ||||||||||||
Lease expiration dates | 2006-2012 | 2006-2020 | 2006-2012 | 2006-2010 | ||||||||||||
Lease | Number of | |||||||
Locations | Expiration | Offices | ||||||
California | 2009 | 1 | ||||||
Connecticut | 2009 – 2010 | 2 | ||||||
Florida | 2006 – 2015 | 3 | ||||||
Georgia | 2006 | 1 | ||||||
Illinois | 2008 | 1 | ||||||
Louisiana | 2006 | 1 | ||||||
Maryland | 2009 | 2 | ||||||
Massachusetts | 2006 – 2008 | 4 | ||||||
New Jersey | 2007 – 2019 | 7 | ||||||
New York | 2006 – 2011 | 8 | ||||||
Ohio | 2010 | 1 | ||||||
Pennsylvania | 2006 – 2014 | 8 | ||||||
Texas | 2006 | 1 | ||||||
Virginia | 2007 | 1 | ||||||
41 | ||||||||
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ISSUER PURCHASES OF EQUITY SECURITIES
• | Each share of Class A Common Stock is 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 aggregate voting power will change 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 aggregate voting power will change 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 | ||
• | Each share of Class B Common Stock is convertible at the option of the holder thereof into one share of Class A Common Stock. |
High | Low | |||||||
Class A Common Stock: | ||||||||
2004 | ||||||||
First Quarter | $ | 11.20 | $ | 6.76 | ||||
Second Quarter | 11.03 | 7.44 | ||||||
Third Quarter | 9.73 | 6.91 | ||||||
Fourth Quarter | 10.82 | 8.00 | ||||||
2005 | ||||||||
First Quarter | $ | 11.34 | $ | 9.04 | ||||
Second Quarter | 10.29 | 7.81 | ||||||
Third Quarter | 9.00 | 6.81 | ||||||
Fourth Quarter | 7.05 | 4.90 |
High | Low | |||||||
Class B Common Stock: | ||||||||
2004 | ||||||||
First Quarter | $ | 10.88 | 6.66 | |||||
Second Quarter | 10.88 | 7.36 | ||||||
Third Quarter | 9.04 | 7.28 | ||||||
Fourth Quarter | 10.40 | 8.20 | ||||||
2005 | ||||||||
First Quarter | $ | 11.12 | 9.20 | |||||
Second Quarter | 10.70 | 7.80 | ||||||
Third Quarter | 8.70 | 7.00 | ||||||
Fourth Quarter | 6.75 | 4.85 |
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Number of securities | ||||||||||||||
Remaining available for | ||||||||||||||
future issuance under | ||||||||||||||
Number of securities to | Weighted-average | equity compensation plans | ||||||||||||
be issued upon exercise | exercise price of | (excluding outstanding | ||||||||||||
Plan category | of outstanding options | outstanding options | options) | |||||||||||
Equity compensation plans approved by security holders | 5,322,093 | $ | 2.90 | — | ||||||||||
Equity compensation plans not approved by security Holders | — | — | ||||||||||||
Total | 5,322,093 | $ | 2.90 | — | ||||||||||
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Selected Consolidated Financial Data
(Dollars in thousands, except for per share data)
For the Years Ended December 31, | ||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||
Income Statement | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
BFC Activities | $ | 3,129 | $ | 5,683 | $ | 1,073 | $ | 607 | $ | 2,482 | ||||||||||
Financial Services | 696,898 | 601,578 | 541,910 | 492,344 | 412,091 | |||||||||||||||
Homebuilding and Real Estate Development | 574,824 | 558,838 | 288,686 | 212,081 | 147,977 | |||||||||||||||
1,274,851 | 1,166,099 | 831,669 | 705,032 | 562,550 | ||||||||||||||||
Costs and Expenses | ||||||||||||||||||||
BFC Activities | 9,665 | 7,172 | 7,019 | 5,141 | 8,037 | |||||||||||||||
Financial Services | 608,476 | 494,415 | 480,314 | 467,181 | 372,505 | |||||||||||||||
Homebuilding and Real Estate Development | 498,760 | 481,618 | 253,169 | 191,662 | 136,885 | |||||||||||||||
1,116,901 | 983,205 | 740,502 | 663,984 | 517,427 | ||||||||||||||||
Equity in earnings from unconsolidated Affiliates | 13,404 | 19,603 | 10,126 | 9,327 | 2,888 | |||||||||||||||
Income from continuing operations | 171,354 | 202,497 | 101,293 | 50,375 | 48,011 | |||||||||||||||
Provision for income taxes | 70,256 | 84,103 | 44,226 | 18,022 | 25,274 | |||||||||||||||
Noncontrolling interest in income of consolidated subsidiaries | 91,144 | 103,994 | 51,093 | 38,294 | 18,379 | |||||||||||||||
Income (loss) from continuing operations | 9,954 | 14,400 | 5,974 | (5,941 | ) | 4,358 | ||||||||||||||
Income (loss) from discontinued operations, net of taxes | 2,820 | (170 | ) | 1,048 | 2,491 | (22 | ) | |||||||||||||
Income from extraordinary items, net of taxes | — | — | — | 23,749 | — | |||||||||||||||
Income (loss) from cumulative effect of a change in accounting principle, net of taxes | — | — | — | (15,107 | ) | 1,138 | ||||||||||||||
Net income | 12,774 | 14,230 | 7,022 | 5,192 | 5,474 | |||||||||||||||
Amortization of goodwill, net of tax | — | — | — | — | 735 | |||||||||||||||
Net income adjusted to exclude goodwill amortization | 12,774 | 14,230 | 7,022 | 5,192 | 6,209 | |||||||||||||||
5% Preferred Stock dividends | 750 | 392 | — | — | — | |||||||||||||||
Net income available to Common shareholders | $ | 12,024 | $ | 13,838 | $ | 7,022 | $ | 5,192 | $ | 6,209 | ||||||||||
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Selected Consolidated Financial Data – Continued
(Dollars in thousands, except for per share data)
For the Years Ended December 31, | ||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||
Common Share Data (a), (c), ( d) | ||||||||||||||||||||
Basic earnings (loss) per share from continuing operations | $ | 0.32 | $ | 0.58 | $ | 0.26 | $ | (0.27 | ) | $ | 0.19 | |||||||||
Discontinued operations | 0.10 | (0.01 | ) | 0.05 | 0.11 | — | ||||||||||||||
Extraordinary items | — | — | — | 1.06 | — | |||||||||||||||
Cumulative effect of a change in accounting principle | — | — | — | (0.67 | ) | 0.05 | ||||||||||||||
Basic earnings per share of common stock | 0.42 | 0.57 | 0.31 | 0.23 | 0.24 | |||||||||||||||
Basic earnings per share from amortization of goodwill | — | — | — | — | 0.03 | |||||||||||||||
Basic earnings per share adjusted to exclude goodwill amortization | $ | 0.42 | $ | 0.57 | $ | 0.31 | $ | 0.23 | $ | 0.28 | ||||||||||
Diluted earnings (loss) per share from continuing operations | $ | 0.29 | $ | 0.48 | $ | 0.21 | $ | (0.28 | ) | $ | 0.13 | |||||||||
Discontinued operations | 0.09 | (0.01 | ) | 0.04 | 0.11 | — | ||||||||||||||
Extraordinary items | — | — | — | 1.04 | — | |||||||||||||||
Cumulative effect of a change in accounting principle | — | — | — | (0.66 | ) | 0.05 | ||||||||||||||
Diluted earnings per share of common stock | 0.38 | 0.47 | 0.25 | 0.21 | 0.18 | |||||||||||||||
Diluted earnings per share from amortization of goodwill | — | — | — | — | 0.03 | |||||||||||||||
Diluted earnings per share adjusted to exclude goodwill amortization | $ | 0.38 | $ | 0.47 | $ | 0.25 | $ | 0.21 | $ | 0.20 | ||||||||||
Basic weighted average number of common shares outstanding | 28,952 | 24,183 | 22,818 | 22,454 | 22,341 | |||||||||||||||
Diluted weighted average number of common shares outstanding | 31,219 | 27,806 | 26,031 | 22,454 | 24,631 | |||||||||||||||
Ratio of earnings to fixed charges (e) | — | — | 0.28 | — | 0.97 | |||||||||||||||
Dollar deficiency of earnings to Fixed charges (e) | 7,245 | 4,145 | — | 1,347 | — |
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Selected Consolidated Financial Data – Continued
(Dollars in thousands, except for per share data)
December 31, | ||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||
Balance Sheet (at period end) | ||||||||||||||||||||
Loans and leases, net (f) | $ | 4,632,104 | 4,561,073 | 3,611,612 | $ | 3,377,870 | $ | 2,776,624 | ||||||||||||
Securities | 1,241,920 | 1,192,335 | 677,713 | 1,111,825 | 1,356,497 | |||||||||||||||
Total assets | 7,384,026 | 6,954,847 | 5,136,235 | 5,415,933 | 4,665,359 | |||||||||||||||
Deposits | 3,752,676 | 3,457,202 | 3,058,142 | 2,920,555 | 2,276,567 | |||||||||||||||
Securities sold under agreements to repurchase and federal funds purchased | 109,788 | 257,002 | 120,874 | 116,279 | 467,070 | |||||||||||||||
Other borrowings (g) | 2,131,976 | 2,086,368 | 1,209,571 | 1,686,613 | 1,326,264 | |||||||||||||||
Shareholders’ equity | 183,080 | 125,251 | 85,675 | 77,411 | 74,172 | |||||||||||||||
Book value per share (d), (h) | 5.25 | 4.25 | 3.68 | 3.45 | 3.31 | |||||||||||||||
Return on average equity (b) | 8.08 | % | 13.16 | % | 8.63 | % | 6.85 | % | 7.44 | % | ||||||||||
BankAtlantic Asset quality ratios | ||||||||||||||||||||
Non-performing assets, net of reserves as a percent of total loans, tax certificates and real estate owned | 0.17 | % | 0.19 | % | 0.36 | % | 0.86 | % | 1.49 | |||||||||||
Loan loss allowance as a percent of non-performing loans | 605.68 | % | 582.18 | % | 422.06 | % | 235.61 | % | 114.44 | |||||||||||
Loan loss allowance as a percentage of total loans | 0.88 | % | 1.00 | % | 1.24 | % | 1.38 | % | 1.57 | |||||||||||
Capital Ratios for BankAtlantic: | ||||||||||||||||||||
Total risk based capital | 11.50 | % | 10.80 | % | 12.06 | % | 11.89 | % | 12.90 | % | ||||||||||
Tier I risk based capital | 10.02 | % | 9.19 | % | 10.22 | % | 10.01 | % | 11.65 | % | ||||||||||
Leverage | 7.42 | % | 6.83 | % | 8.52 | % | 7.26 | % | 8.02 | % | ||||||||||
Levitt Corporation: | ||||||||||||||||||||
Consolidated margin on sales of real estate | $ | 150,030 | $ | 143,378 | $ | 73,627 | $ | 48,133 | $ | 31,455 | ||||||||||
Consolidated Margin | 26.90 | % | 26.1 | % | 26.0 | % | 23.2 | % | 22.0 | |||||||||||
Homes delivered | 1,789 | 2,126 | 1,011 | 740 | 597 | |||||||||||||||
Backlog of homes (units) | 1,792 | 1,814 | 2,053 | 824 | 584 | |||||||||||||||
Backlog of homes (sales value) | $ | 557,325 | $ | 448,647 | $ | 458,771 | $ | 167,526 | $ | 125,041 | ||||||||||
Land division acres sold | 1,647 | 764 | 1,337 | 1,473 | 253 |
(a) | Since its inception, BFC has not paid any cash dividends. | |
(b) | Ratios were computed using quarterly averages. | |
(c) | 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 | |
(d) | I.R.E. Realty Advisory Group, Inc. (“RAG”) owns 4,764,282 shares of BFC’s Class A Common Stock and 500,000 shares of BFC Class B Common Stock. Because the Company owns 45.5% of the outstanding common stock of RAG, 2,167,748 shares of Class A Common Stock and 227,500 shares of Class B Common Stock are eliminated from the number of shares outstanding for purposes of computing earnings per share and book value per share. | |
(e) | The operations, fixed charges and dividends of BankAtlantic Bancorp and Levitt are not included in the calculation because each of those subsidiaries are separate, publicly traded companies whose Board of Directors are composed of individuals, a majority of whom are independent. Accordingly, decisions made by those Boards, including with respect to the payment of dividends, are not within our control. | |
(f) | Includes $233,000, $0, and $5,000 of bankers acceptances in 2003, 2002 and 2001, respectively and none in 2005 and 2004. | |
(g) | Other borrowings consist of FHLB advances, subordinated debentures, mortgage notes payable and bonds payable, secured borrowings, guaranteed preferred beneficial interests in Bancorp’s junior subordinated debentures and junior subordinated debentures. | |
(h) | Preferred stock redemption price is eliminated from shareholders’ equity for purposes of computing book value per share. |
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SELECTED PARENT COMPANY ONLY FINANCIAL DATA
(In thousand)
December 31, | ||||||||
2005 | 2004 | |||||||
Balance Sheet Data: | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 26,683 | $ | 1,520 | ||||
Investment securities | 2,034 | 1,800 | ||||||
Investment in Benihana | 20,000 | 10,000 | ||||||
Investment in venture partnerships | 950 | 971 | ||||||
Investment in BankAtlantic Bancorp, Inc. | 112,218 | 103,125 | ||||||
Investment in Levitt Corporation | 58,111 | 48,983 | ||||||
Investment in other subsidiaries | 1,631 | 31,867 | ||||||
Loans receivable | 2,071 | 3,364 | ||||||
Other assets | 960 | 2,596 | ||||||
Total assets | $ | 224,658 | $ | 204,226 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Mortgages payable and other borrowings | $ | — | $ | 10,483 | ||||
Advances from and negative basis in wholly owned subsidiaries (a) | 462 | 34,636 | ||||||
Other liabilities | 7,417 | 6,828 | ||||||
Deferred income taxes | 33,699 | 27,028 | ||||||
Total liabilities | 41,578 | 78,975 | ||||||
Total shareholders’ equity | 183,080 | 125,251 | ||||||
Total liabilities and shareholders’ equity | 224,658 | 204,226 | ||||||
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Statements of Operations Data: | ||||||||||||
Revenues | $ | 1,775 | $ | 3,514 | $ | 1,051 | ||||||
Expenses | 14,904 | 6,717 | 3,954 | |||||||||
(Loss) before undistributed earnings from subsidiaries | (13,129 | ) | (3,203 | ) | (2,903 | ) | ||||||
Equity from earnings in BankAtlantic Bancorp | 12,689 | 15,694 | 15,222 | |||||||||
Equity from earnings in Levitt | 9,125 | 10,265 | — | |||||||||
Equity from earnings (loss) in other subsidiaries | 6,671 | (35 | ) | (1,428 | ) | |||||||
Income before income taxes | 15,356 | 22,721 | 10,891 | |||||||||
Provision for income taxes | 5,402 | 8,321 | 3,774 | |||||||||
Income from continuing operations | 9,954 | 14,400 | 7,117 | |||||||||
Discontinued operations, net of tax | 2,820 | (170 | ) | (95 | ) | |||||||
Net income | 12,774 | 14,230 | 7,022 | |||||||||
5% Preferred Stock dividends | 750 | 392 | — | |||||||||
$ | 12,024 | $ | 13,838 | $ | 7,022 | |||||||
Statements of Cash Flow Data: | ||||||||||||
Operating Activities: | ||||||||||||
Income from continuing operations | $ | 9,954 | $ | 14,400 | $ | 7,117 | ||||||
Income (loss) from discontinued operations, net of tax | 2,820 | (170 | ) | (95 | ) | |||||||
Other operating activities | (14,963 | ) | (20,317 | ) | (9,380 | ) | ||||||
Net cash used in operating activities | (2,189 | ) | (6,087 | ) | (2,358 | ) | ||||||
Net cash (used in) provided by investing activities | (7,775 | ) | (7,503 | ) | 2,815 | |||||||
Net cash provided by financing activities | 35,127 | 13,574 | 282 | |||||||||
Increase (decrease) in cash and cash equivalents | 25,163 | (16 | ) | 739 | ||||||||
Cash at beginning of period | 1,520 | 1,536 | 797 | |||||||||
Cash at end of period | $ | 26,683 | $ | 1,520 | $ | 1,536 | ||||||
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Percent of | Percent | |||||||||||
Shares | Economic | Of | ||||||||||
Owned | Ownership | Vote | ||||||||||
BankAtlantic Bancorp | ||||||||||||
Class A Common Stock | 8,329,236 | 14.90 | % | 7.90 | % | |||||||
Class B Common Stock | 4,876,124 | 100.00 | % | 47.00 | % | |||||||
Total | 13,205,360 | 21.73 | % | 54.90 | % | |||||||
Levitt | ||||||||||||
Class A Common Stock | 2,074,243 | 11.15 | % | 5.91 | % | |||||||
Class B Common Stock | 1,219,031 | 100.00 | % | 47.00 | % | |||||||
Total | 3,293,274 | 16.62 | % | 52.91 | % |
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For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
BFC Activities | $ | (11,853 | ) | $ | (9,736 | ) | $ | (9,506 | ) | |||
Financial Services | 59,182 | 70,768 | 38,597 | |||||||||
Homebuilding & Real Estate Development | 54,911 | 57,362 | 26,820 | |||||||||
Eliminations | (1,142 | ) | — | 1,156 | ||||||||
101,098 | 118,394 | 57,067 | ||||||||||
Noncontrolling interest | 91,144 | 103,994 | 51,093 | |||||||||
Income from continuing operations | 9,954 | 14,400 | 5,974 | |||||||||
Discontinued operations, (less applicable income taxes) | 2,820 | (170 | ) | 1,048 | ||||||||
Net income | $ | 12,774 | $ | 14,230 | $ | 7,022 | ||||||
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Change | Change | |||||||||||||||||||
For the Years Ended December 31, | 2005 vs. | 2004 vs. | ||||||||||||||||||
(In thousands) | 2005 | 2004 | 2003 | 2004 | 2003 | |||||||||||||||
Revenues | ||||||||||||||||||||
Interest and dividend income | $ | 1,623 | $ | 680 | $ | 390 | $ | 943 | $ | 290 | ||||||||||
Other income, net | 1,750 | 5,335 | 897 | (3,585 | ) | 4,438 | ||||||||||||||
3,373 | 6,015 | 1,287 | (2,642 | ) | 4,728 | |||||||||||||||
Cost and Expenses | ||||||||||||||||||||
Interest expense | 346 | 393 | 373 | (47 | ) | 20 | ||||||||||||||
Employee compensation and benefits | 6,245 | 3,865 | 2,332 | 2,380 | 1,533 | |||||||||||||||
Impairment of securities | — | 363 | 3,071 | (363 | ) | (2,708 | ) | |||||||||||||
Other expenses, net | 3,505 | 2,959 | 1,243 | 546 | 1,716 | |||||||||||||||
10,096 | 7,580 | 7,019 | 2,516 | 561 | ||||||||||||||||
Loss before income taxes | (6,723 | ) | (1,565 | ) | (5,732 | ) | (5,158 | ) | 4,167 | |||||||||||
Provision for income taxes | 5,130 | 8,171 | 3,774 | (3,041 | ) | 4,397 | ||||||||||||||
Minority interest | 6 | 1,822 | (1,401 | ) | (1,816 | ) | 3,223 | |||||||||||||
Loss from continuing operations | (11,859 | ) | (11,558 | ) | (8,105 | ) | (301 | ) | (3,453 | ) | ||||||||||
Discontinued operations, less income taxes | 2,820 | (170 | ) | (95 | ) | 2,990 | (75 | ) | ||||||||||||
Net loss | $ | (9,039 | ) | $ | (11,728 | ) | $ | (8,200 | ) | $ | 2,689 | $ | (3,528 | ) | ||||||
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For the Years Ended December 31, 2005 | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Net cash provided by (used in): | ||||||||||||
Operating activities | $ | (2,164 | ) | $ | (6,012 | ) | $ | (4,150 | ) | |||
Investing activities | (7,847 | ) | (8,120 | ) | 4,626 | |||||||
Financing activities | 34,590 | 14,757 | 60 | |||||||||
Increase in cash and cash equivalents | 24,579 | 625 | 536 | |||||||||
Cash and cash equivalents at beginning of period | 2,227 | 1,602 | 1,066 | |||||||||
Cash and cash equivalents at end of period | $ | 26,806 | $ | 2,227 | $ | 1,602 | ||||||
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• | Net proceeds of approximately $46.4 million after underwriting discounts, commissions and offering expenses received from the sale of 5,957,555 shares of Class A Common Stock in an underwritten public offering; | ||
• | Net proceeds of $15.0 million in 2004 received upon the sale by the Company of its 5% Cumulative Convertible Preferred Stock; | ||
• | Borrowings on our revolving line of credit; | ||
• | Dividends from BankAtlantic Bancorp and Levitt; | ||
• | Dividends from Benihana; | ||
• | Revenues from property operations; | ||
• | Principal and interest payments on loans receivable, and | ||
• | Proceeds from the exercise of stock options. | ||
Funds were primarily utilized by BFC to: | |||
• | Purchase an aggregate of 800,000 shares of Benihana Convertible Preferred Stock for a purchase price of $20 million; | ||
• | Pay approximately $10.5 million outstanding on the revolving line of credit and payments of mortgage payables; | ||
• | Fund BFC’s operating and general and administrative expenses; and | ||
• | Fund the payment of dividends on the Company’s 5% Cumulative Convertible Preferred Stock; |
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• | A net increase in BFC’s cash and due from depository institutions as a result of the $46.4 million of net proceeds received on the sale of 5,957,555 shares of BFC’s Class A Common Stock in an underwritten public offering and higher balances at BankAtlantic resulting from lower cash letter receivables. Increase in cash and cash equivalents was partially offset with lower cash and cash equivalents at Levitt; | ||
• | Increase in securities owned and a decrease in due from clearing broker associated with Ryan Beck’s trading activities; | ||
• | Decline in securities available for sale reflecting an investment strategy to limit asset growth in response to the relatively flat yield curve during 2005; | ||
• | Higher investment securities balances associated with a decision to invest in tax exempt securities during the first quarter of 2005 as after tax yields on these securities were more attractive than alternative investments; | ||
• | Lower investment in FHLB stock related to repayments of FHLB advances; | ||
• | Decline in loan receivable balances associated with lower commercial real estate loan balances primarily resulting from a decision to cease condominium lending; | ||
• | Increase in accrued interest receivable resulting from higher earning asset rates during 2005 compared to 2004; | ||
• | A net increase in inventory of real estate at Levitt resulting from land acquisitions in Florida, Georgia, Tennessee and South Carolina and increases in land development and construction costs. These increases in inventory of real estate were partially offset by sales of homes and land at Levitt and lower real estate inventory related to closing of units by the Riverclub real estate joint venture acquired by BankAtlantic in connection with a financial institution acquisition during 2002; | ||
• | A net increase in investment in unconsolidated affiliates primarily associated with earnings from Bluegreen of $15.0 million (net of purchase accounting adjustments), $1.3 million from our pro rata share of unrealized gains associated with Bluegreen’s other comprehensive income and $121,000 associated with Bluegreen’s capital transaction, offset by the $1.3 million net cumulative effect of the restatement. Additional increases in investment in unconsolidated affiliates was due to an investment in a rental real estate joint venture during 2005; | ||
• | An increase in property and equipment at Levitt was associated with the office building constructed and now utilized by Core Communities as its offices and sales center together with an increased investment in Tradition Irrigation facility and Levitt’s technology infrastructure upgrade. Also an increase in office properties and equipment associated with BankAtlantic Bancorp’s new corporate headquarters building and BankAtlantic’s branch renovation and expansion initiatives; and | ||
• | Higher other assets related to an increase in outstanding forgivable notes issued in connection with Ryan Beck’s recruitment and retention program. |
• | Higher deposit account balances resulting from the growth in low-cost deposits associated with “Florida’s Most Convenient Bank” and totally free checking account initiatives; | ||
• | Increase in secured borrowings associated with loan participations sold without recourse that are accounted for as borrowings; | ||
• | Repayments of short term borrowings funded from low cost deposit growth and a decline in total assets; | ||
• | A net increase in notes and mortgage notes payable primarily relating to project debt associated with Levitt’s 2005 land acquisitions and an increase in junior subordinated debentures; |
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• | Increase in development notes payable associated with the Riverclub real estate joint venture; | ||
• | Declines in securities sold but not yet purchased and due from clearing agent resulting from Ryan Beck’s trading activities; | ||
• | Increases in deferred tax liabilities primarily associated with the Company’s tax provision on Levitt’s and BankAtlantic Bancorp’s earnings and an increase in the Company’s other comprehensive income from our subsidiaries, as well as an increase in earnings from Bluegreen. | ||
• | Increase in other liabilities associated with a $10 million reserve established for possible AML-BSA fines and penalties; | ||
• | Increase in deferred rent associated with operating leases executed for BankAtlantic’s branch and corporate facilities expansion; | ||
• | Increase in Levitt other liabilities, accounts payable and accrued liabilities associated with increased construction and development activity and consulting activities. |
December 31, | ||||||||
2005 | 2004 | |||||||
BankAtlantic Bancorp | $ | 404,118 | $ | 366,140 | ||||
Levitt | 291,675 | 245,756 | ||||||
Joint Venture Partnerships | 729 | 756 | ||||||
$ | 696,522 | $ | 612,652 | |||||
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For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
BankAtlantic | $ | 55,820 | $ | 48,540 | $ | 42,129 | ||||||
Ryan Beck | 16,656 | 17,483 | 9,645 | |||||||||
Parent Company | (13,294 | ) | 4,745 | (13,177 | ) | |||||||
Total | $ | 59,182 | $ | 70,768 | $ | 38,597 | ||||||
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For the Years Ended | Change | Change | ||||||||||||||||||
Ended December 31, | 2005 vs | 2004 vs | ||||||||||||||||||
2005 | 2004 | 2003 | 2004 | 2003 | ||||||||||||||||
Net interest income | $ | 221,075 | $ | 176,858 | $ | 154,100 | $ | 44,217 | $ | 22,758 | ||||||||||
Recovery from loan losses | 6,615 | 5,109 | 547 | 1,506 | 4,562 | |||||||||||||||
Net income after provision for loan losses | 227,690 | 181,967 | 154,647 | 45,723 | 27,320 | |||||||||||||||
Non-interest income | 100,060 | 85,724 | 70,686 | 14,336 | 15,038 | |||||||||||||||
Non-interest expense | (241,092 | ) | (193,621 | ) | (161,615 | ) | (47,471 | ) | (32,006 | ) | ||||||||||
Income from continuing operations before income taxes | 86,658 | 74,070 | 63,718 | 12,588 | 10,352 | |||||||||||||||
Income taxes | (30,838 | ) | (25,530 | ) | (21,589 | ) | (5,308 | ) | (3,941 | ) | ||||||||||
Income from continuing operations | $ | 55,820 | $ | 48,540 | $ | 42,129 | $ | 7,280 | $ | 6,411 | ||||||||||
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For the Years Ended | ||||||||||||||||||||||||||||||||||||
December 31, 2005 | December 31, 2004 | December 31, 2003 | ||||||||||||||||||||||||||||||||||
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 | $ | 2,177,432 | 106,992 | 4.91 | % | $ | 1,527,911 | 72,758 | 4.76 | % | $ | 1,639,504 | 78,535 | 4.79 | % | |||||||||||||||||||||
Commercial real estate | 1,828,557 | 130,379 | 7.13 | 1,683,068 | 96,585 | 5.74 | 1,610,707 | 94,193 | 5.85 | |||||||||||||||||||||||||||
Consumer | 514,822 | 31,348 | 6.09 | 421,167 | 17,959 | 4.26 | 316,113 | 14,177 | 4.48 | |||||||||||||||||||||||||||
Lease financing | 3,772 | 394 | 10.45 | 10,771 | 1,125 | 10.44 | 21,930 | 2,490 | 11.35 | |||||||||||||||||||||||||||
Commercial business | 90,648 | 7,061 | 7.79 | 101,288 | 6,423 | 6.34 | 107,371 | 6,126 | 5.71 | |||||||||||||||||||||||||||
Small business | 211,371 | 16,520 | 7.82 | 183,642 | 13,118 | 7.14 | 161,245 | 11,973 | 7.43 | |||||||||||||||||||||||||||
Total loans | 4,826,602 | 292,694 | 6.06 | 3,927,847 | 207,968 | 5.29 | 3,856,870 | 207,494 | 5.38 | |||||||||||||||||||||||||||
Tax exempt securities (c) | 368,807 | 21,391 | 5.80 | 110,748 | 5,988 | 5.41 | — | — | — | |||||||||||||||||||||||||||
Taxable investment securities (b) | 698,279 | 37,184 | 5.33 | 635,129 | 34,948 | 5.50 | 789,451 | 43,741 | 5.54 | |||||||||||||||||||||||||||
Federal funds sold | 4,275 | 17 | 0.40 | 6,282 | 47 | 0.75 | 16,499 | 166 | 1.01 | |||||||||||||||||||||||||||
Total investment securities | 1,071,361 | 58,592 | 5.47 | 752,159 | 40,983 | 5.45 | 805,950 | 43,907 | 5.45 | |||||||||||||||||||||||||||
Total interest earning assets | 5,897,963 | 351,286 | 5.96 | % | 4,680,006 | 248,951 | 5.32 | % | 4,662,820 | 251,401 | 5.39 | % | ||||||||||||||||||||||||
Non-interest earning assets | ||||||||||||||||||||||||||||||||||||
Total non-interest earning assets | 389,186 | 333,253 | 324,598 | |||||||||||||||||||||||||||||||||
Total assets | $ | 6,287,149 | $ | 5,013,259 | $ | 4,987,418 | ||||||||||||||||||||||||||||||
Interest bearing liabilities | ||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||
Savings | $ | 298,867 | 909 | 0.30 | % | $ | 243,906 | 652 | 0.27 | % | $ | 190,506 | 856 | 0.45 | % | |||||||||||||||||||||
NOW, money funds and checking | 1,582,182 | 16,593 | 1.05 | 1,489,442 | 10,861 | 0.73 | 1,315,747 | 11,142 | 0.85 | |||||||||||||||||||||||||||
Certificate accounts | 784,525 | 22,582 | 2.88 | 733,717 | 16,842 | 2.30 | 882,736 | 24,191 | 2.74 | |||||||||||||||||||||||||||
Total interest bearing deposits | 2,665,574 | 40,084 | 1.50 | 2,467,065 | 28,355 | 1.15 | 2,388,989 | 36,189 | 1.51 | |||||||||||||||||||||||||||
Securities sold under agreements to repurchase and federal funds Purchased | 314,782 | 9,760 | 3.10 | 252,718 | 3,349 | 1.33 | 285,284 | 3,089 | 1.08 | |||||||||||||||||||||||||||
Advances from FHLB | 1,538,852 | 62,175 | 4.04 | 959,588 | 37,689 | 3.93 | 1,195,653 | 57,299 | 4.79 | |||||||||||||||||||||||||||
Subordinated debentures , secured Borrowings and notes payable | 191,050 | 12,584 | 6.59 | 36,220 | 2,002 | 5.53 | 35,457 | 1,917 | 5.41 | |||||||||||||||||||||||||||
Total interest bearing liabilities | 4,710,258 | 124,603 | 2.65 | 3,715,591 | 71,395 | 1.92 | 3,905,383 | 98,494 | 2.52 | |||||||||||||||||||||||||||
Non-interest bearing liabilities | ||||||||||||||||||||||||||||||||||||
Demand deposit and escrow accounts | 979,075 | 765,084 | 551,866 | |||||||||||||||||||||||||||||||||
Other liabilities | 53,150 | 29,111 | 55,261 | |||||||||||||||||||||||||||||||||
Total non-interest bearing liabilities | 1,032,225 | 794,195 | 607,127 | |||||||||||||||||||||||||||||||||
Stockholders’ equity | 544,666 | 503,473 | 474,908 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ Equity | $ | 6,287,149 | $ | 5,013,259 | $ | 4,987,418 | ||||||||||||||||||||||||||||||
Net interest income/net interest spread | 226,683 | 3.31 | % | 177,556 | 3.40 | % | $ | 152,907 | 2.87 | % | ||||||||||||||||||||||||||
Tax equivalent adjustment | ||||||||||||||||||||||||||||||||||||
Capitalized interest from real estate | (7,487 | ) | (2,096 | ) | ||||||||||||||||||||||||||||||||
Operations | 1,879 | 1,398 | 1,193 | |||||||||||||||||||||||||||||||||
Net interest income | $ | 221,075 | $ | 176,858 | $ | 154,100 | ||||||||||||||||||||||||||||||
Margin | ||||||||||||||||||||||||||||||||||||
Interest income/interest earning assets | 5.96 | % | 5.32 | % | 5.39 | % | ||||||||||||||||||||||||||||||
Interest expense/interest earning assets | 2.11 | 1.53 | 2.11 | |||||||||||||||||||||||||||||||||
Tax equivalent net interest margin | 3.85 | % | 3.79 | % | 3.28 | % | ||||||||||||||||||||||||||||||
a) | Includes non-accruing loans | |
b) | Average balances were based on amortized cost. | |
c) | The tax equivalent basis is computed using a 35% tax rate. |
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Year Ended | Year Ended | |||||||||||||||||||||||
December 31, 2005 | December 31, 2004 | |||||||||||||||||||||||
Compared to Year Ended | Compared to Year Ended | |||||||||||||||||||||||
December 31, 2004 | December 31, 2003 | |||||||||||||||||||||||
Volume (a) | Rate | Total | Volume (a) | Rate | Total | |||||||||||||||||||
Increase (decrease) due to: | ||||||||||||||||||||||||
Loans | $ | 54,502 | $ | 30,224 | $ | 84,726 | $ | 3,758 | $ | (3,284 | ) | $ | 474 | |||||||||||
Tax exempt securities | 14,968 | 435 | 15,403 | 5,988 | — | 5,988 | ||||||||||||||||||
Taxable investment securities (b) | 3,363 | (1,127 | ) | 2,236 | (8,492 | ) | (301 | ) | (8,793 | ) | ||||||||||||||
Federal funds sold | (8 | ) | (22 | ) | (30 | ) | (76 | ) | (43 | ) | (119 | ) | ||||||||||||
Total earning assets | 72,825 | 29,510 | 102,335 | 1,178 | (3,628 | ) | (2,450 | ) | ||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings | 167 | 90 | 257 | 143 | (347 | ) | (204 | ) | ||||||||||||||||
NOW, money funds, and checking | 973 | 4,759 | 5,732 | 1,267 | (1,548 | ) | (281 | ) | ||||||||||||||||
Certificate accounts | 1,462 | 4,278 | 5,740 | (3,421 | ) | (3,928 | ) | (7,349 | ) | |||||||||||||||
Total deposits | 2,602 | 9,127 | 11,729 | (2,011 | ) | (5,823 | ) | (7,834 | ) | |||||||||||||||
Securities sold under agreements to repurchase | 1,924 | 4,487 | 6,411 | (432 | ) | 692 | 260 | |||||||||||||||||
Advances from FHLB | 23,404 | 1,082 | 24,486 | (9,272 | ) | (10,338 | ) | (19,610 | ) | |||||||||||||||
Subordinated debentures | 10,198 | 384 | 10,582 | 42 | 43 | 85 | ||||||||||||||||||
35,526 | 5,953 | 41,479 | (9,662 | ) | (9,603 | ) | (19,265 | ) | ||||||||||||||||
Total interest bearing liabilities | 38,128 | 15,080 | 53,208 | (11,673 | ) | (15,426 | ) | (27,099 | ) | |||||||||||||||
Change in tax equivalent interest income | $ | 34,697 | $ | 14,430 | $ | 49,127 | $ | 12,851 | $ | 11,798 | $ | 24,649 | ||||||||||||
(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, | ||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||
Balance, beginning of period | $ | 46,010 | $ | 45,595 | $ | 48,022 | $ | 44,585 | $ | 47,000 | ||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial business loans | — | — | (2,394 | ) | — | — | ||||||||||||||
Commercial real estate loans | — | (645 | ) | — | (6,998 | ) | — | |||||||||||||
Small business | (764 | ) | (238 | ) | (771 | ) | (953 | ) | (88 | ) | ||||||||||
Consumer loans | (259 | ) | (585 | ) | (1,563 | ) | (1,006 | ) | (2,629 | ) | ||||||||||
Residential real estate loans | (453 | ) | (582 | ) | (681 | ) | (827 | ) | (244 | ) | ||||||||||
Continuing loan products | (1,476 | ) | (2,050 | ) | (5,409 | ) | (9,784 | ) | (2,961 | ) | ||||||||||
Discontinued loan products | (1,218 | ) | (2,026 | ) | (6,314 | ) | (18,879 | ) | (24,955 | ) | ||||||||||
Total charge-offs | (2,694 | ) | (4,076 | ) | (11,723 | ) | (28,663 | ) | (27,916 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Commercial business loans | 18 | 536 | 95 | 76 | 331 | |||||||||||||||
Commercial real estate loans | 1,471 | 4,052 | 3 | 20 | 10 | |||||||||||||||
Small business | 899 | 418 | 559 | 7 | 4 | |||||||||||||||
Consumer loans | 401 | 370 | 622 | 477 | 769 | |||||||||||||||
Residential real estate loans | 65 | 486 | 726 | 331 | 223 | |||||||||||||||
Continuing loan products | 2,854 | 5,862 | 2,005 | 911 | 1,337 | |||||||||||||||
Discontinued loan products | 1,637 | 3,738 | 8,572 | 7,968 | 7,259 | |||||||||||||||
Total recoveries | 4,491 | 9,600 | 10,577 | 8,879 | 8,596 | |||||||||||||||
Net (charge-offs) recoveries | 1,797 | 5,524 | (1,146 | ) | (19,784 | ) | (19,320 | ) | ||||||||||||
Provision for (recovery from) loan losses | (6,615 | ) | (5,109 | ) | (547 | ) | 14,077 | 16,905 | ||||||||||||
Adjustments to acquired loan losses | — | — | (734 | ) | 9,144 | — | ||||||||||||||
Balance, end of period | $ | 41,192 | $ | 46,010 | $ | 45,595 | $ | 48,022 | $ | 44,585 | ||||||||||
As of December 31, | ||||||||||||||||||||||||
2005 | 2004 | 2003 | ||||||||||||||||||||||
Allocation | Allocation | Allocation | ||||||||||||||||||||||
Amount | of ALL | Amount | of ALL | Amount | of ALL | |||||||||||||||||||
Lease finance | $ | 664 | $ | 156 | $ | 6,551 | $ | 1,429 | $ | 14,442 | $ | 3,425 | ||||||||||||
Syndication loans | — | — | — | — | 9,114 | 185 | ||||||||||||||||||
Small business (1) | — | — | — | — | 9,569 | 873 | ||||||||||||||||||
Consumer — indirect | 543 | 10 | 1,734 | 2 | 2,402 | 70 | ||||||||||||||||||
$ | 1,207 | $ | 166 | $ | 8,285 | $ | 1,431 | $ | 35,527 | $ | 4,553 | |||||||||||||
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As of December 31, | ||||||||||||||||
2002 | 2001 | |||||||||||||||
Allocation | Allocation | |||||||||||||||
Amount | of ALL | Amount | of ALL | |||||||||||||
Lease finance | $ | 31,279 | $ | 7,396 | $ | 54,969 | $ | 8,639 | ||||||||
Syndication loans | 14,499 | 294 | 40,774 | 8,602 | ||||||||||||
Small business (1) | 17,297 | 2,143 | 32,123 | 4,105 | ||||||||||||
Consumer — indirect | 8,105 | 457 | 25,400 | 1,247 | ||||||||||||
$ | 71,180 | $ | 10,290 | $ | 153,266 | $ | 22,593 | |||||||||
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December 31, 2005 | December 31, 2004 | December 31, 2003 | ||||||||||||||||||||||||||||||||||
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 business | $ | 1,988 | 2.30 | 1.63 | $ | 2,507 | 2.94 | 1.59 | $ | 1,715 | 2.15 | 1.81 | ||||||||||||||||||||||||
Commercial real estate | 17,984 | 0.75 | 45.19 | 23,345 | 0.92 | 47.28 | 24,005 | 0.99 | 55.12 | |||||||||||||||||||||||||||
Small business | 2,640 | 1.12 | 4.43 | 2,403 | 1.26 | 3.55 | 2,300 | 1.44 | 3.63 | |||||||||||||||||||||||||||
Residential real estate | 2,592 | 0.13 | 38.54 | 2,565 | 0.12 | 38.57 | 2,111 | 0.16 | 30.56 | |||||||||||||||||||||||||||
Consumer — direct | 6,354 | 1.17 | 10.19 | 4,281 | 0.90 | 8.86 | 3,900 | 1.10 | 8.07 | |||||||||||||||||||||||||||
Discontinued loan products | 156 | 12.92 | 0.02 | 1,431 | 17.27 | 0.15 | 4,553 | 12.81 | 0.81 | |||||||||||||||||||||||||||
Total assigned | 31,714 | 36,532 | 38,584 | |||||||||||||||||||||||||||||||||
Unassigned | 9,478 | N/A | N/A | 9,478 | N/A | N/A | 7,011 | N/A | N/A | |||||||||||||||||||||||||||
$ | 41,192 | 0.78 | 100.00 | $ | 46,010 | 0.86 | 100.00 | $ | 45,595 | 1.04 | 100.00 | |||||||||||||||||||||||||
December 31, 2002 | December 31, 2001 | |||||||||||||||||||||||
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 business | $ | 1,437 | 1.75 | 2.06 | $ | 1,563 | 2.02 | 2.37 | ||||||||||||||||
Commercial real estate | 21,124 | 1.05 | 50.75 | 13,682 | 0.82 | 50.86 | ||||||||||||||||||
Small business | 2,863 | 1.99 | 3.61 | 1,073 | 1.53 | 2.14 | ||||||||||||||||||
Residential real estate | 2,512 | 0.18 | 34.60 | 1,304 | 0.12 | 34.08 | ||||||||||||||||||
Consumer — direct | 3,239 | 1.13 | 7.19 | 2,064 | 1.07 | 5.87 | ||||||||||||||||||
Discontinued loan products | 10,290 | 14.46 | 1.79 | 22,593 | 14.74 | 4.68 | ||||||||||||||||||
Total assigned | 41,465 | 42,279 | ||||||||||||||||||||||
Unassigned | 6,557 | N/A | N/A | 2,306 | N/A | N/A | ||||||||||||||||||
$ | 48,022 | 1.21 | 100.00 | $ | 44,585 | 1.36 | 100.00 | |||||||||||||||||
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December 31, | ||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||
NONPERFORMING ASSETS | ||||||||||||||||||||
Tax certificates | $ | 388 | $ | 381 | $ | 894 | $ | 1,419 | $ | 1,727 | ||||||||||
Residential | 5,981 | 5,538 | 9,777 | 14,237 | 10,908 | |||||||||||||||
Syndication | — | — | — | — | 10,700 | |||||||||||||||
Commercial real estate and business | 340 | 340 | 52 | 1,474 | 13,066 | |||||||||||||||
Small business — real estate | 9 | 88 | 155 | 239 | 905 | |||||||||||||||
Lease financing | — | 727 | 25 | 3,900 | 2,585 | |||||||||||||||
Consumer | 471 | 1,210 | 794 | 532 | 796 | |||||||||||||||
Total non-accrual assets | 7,189 | 8,284 | 11,697 | 21,801 | 40,687 | |||||||||||||||
Residential real estate owned | 86 | 309 | 1,474 | 1,304 | 2,033 | |||||||||||||||
Commercial real estate owned | 881 | 383 | 948 | 8,303 | 1,871 | |||||||||||||||
Consumer | — | — | — | 4 | 17 | |||||||||||||||
Lease financing | — | — | — | — | — | |||||||||||||||
Total repossessed assets | 967 | 692 | 2,422 | 9,611 | 3,921 | |||||||||||||||
Total nonperforming assets | 8,156 | 8,976 | 14,119 | 31,412 | 44,608 | |||||||||||||||
Specific valuation allowances | — | — | — | (1,386 | ) | (9,936 | ) | |||||||||||||
Total nonperforming assets, net | $ | 8,156 | $ | 8,976 | $ | 14,119 | $ | 30,026 | $ | 34,672 | ||||||||||
Total nonperforming assets as a percentage of: | ||||||||||||||||||||
Total assets | 0.13 | 0.15 | 0.31 | 0.64 | 1.03 | |||||||||||||||
Loans, tax certificates and net real estate owned | 0.17 | 0.19 | 0.36 | 0.86 | 1.49 | |||||||||||||||
TOTAL ASSETS | $ | 6,109,330 | $ | 6,044,988 | $ | 4,566,850 | $ | 4,903,886 | $ | 4,330,690 | ||||||||||
TOTAL LOANS, TAX CERTIFICATES AND NET REAL ESTATE OWNED | $ | 4,830,268 | $ | 4,771,682 | $ | 3,872,473 | $ | 3,673,110 | $ | 2,989,979 | ||||||||||
Allowance for loan losses | $ | 41,192 | $ | 46,010 | $ | 45,595 | $ | 48,022 | $ | 44,585 | ||||||||||
Total tax certificates | $ | 166,697 | $ | 170,028 | $ | 193,776 | $ | 195,947 | $ | 145,598 | ||||||||||
Allowance for tax certificate losses | $ | 3,271 | $ | 3,297 | $ | 2,870 | $ | 1,873 | $ | 1,521 | ||||||||||
OTHER POTENTIAL PROBLEM LOANS | ||||||||||||||||||||
CONTRACTUALLY PAST DUE 90 DAYS OR MORE | ||||||||||||||||||||
Commercial real estate and business (1) | $ | — | $ | — | $ | 135 | $ | 100 | $ | — | ||||||||||
PERFORMING IMPAIRED LOANS, NET OF SPECIFIC ALLOWANCES | ||||||||||||||||||||
Performing impaired loans | 193 | 320 | 180 | — | — | |||||||||||||||
RESTRUCTURED LOANS | ||||||||||||||||||||
Commercial real estate and business | 77 | 24 | 1,387 | 1,882 | 743 | |||||||||||||||
TOTAL POTENTIAL PROBLEM LOANS | $ | 270 | $ | 344 | $ | 1,702 | $ | 1,982 | $ | 743 | ||||||||||
(1) | The majority of these loans have matured and the borrower continues to make payments under the matured loan agreement. |
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For the Years Ended | Change | Change | ||||||||||||||||||
Ended December 31, | 2005 vs | 2004 vs | ||||||||||||||||||
2005 | 2004 | 2003 | 2004 | 2003 | ||||||||||||||||
Other service charges and fees | $ | 23,347 | $ | 23,620 | $ | 19,318 | $ | (273 | ) | $ | 4,302 | |||||||||
Service charges on deposits | 61,956 | 51,435 | 40,569 | 10,521 | 10,866 | |||||||||||||||
Income from real estate operations | 4,480 | 2,405 | 5,642 | 2,075 | (3,237 | ) | ||||||||||||||
Gains on sales of loans | 742 | 483 | 122 | 259 | 361 | |||||||||||||||
Securities activities, net | 117 | 37 | (1,957 | ) | 80 | 1,994 | ||||||||||||||
Gain (loss) on sales of bank facilities | 1,200 | (16 | ) | (46 | ) | 1,216 | 30 | |||||||||||||
Other | 8,218 | 7,760 | 7,038 | 458 | 722 | |||||||||||||||
Non-interest income | $ | 100,060 | $ | 85,724 | $ | 70,686 | $ | 14,336 | $ | 15,038 | ||||||||||
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For the Years Ended | Change | Change | ||||||||||||||||||
Ended December 31, | 2005 vs | 2004 vs | ||||||||||||||||||
2005 | 2004 | 2003 | 2004 | 2003 | ||||||||||||||||
Employee compensation and benefits | $ | 113,526 | $ | 93,154 | $ | 79,492 | $ | 20,372 | $ | 13,662 | ||||||||||
Occupancy and equipment | 41,611 | 32,713 | 27,329 | 8,898 | 5,384 | |||||||||||||||
Impairment of office properties and equipment | 3,706 | — | — | 3,706 | — | |||||||||||||||
Advertising and promotion | 26,895 | 16,012 | 9,434 | 10,883 | 6,578 | |||||||||||||||
Amortization of intangible assets | 1,627 | 1,715 | 1,772 | (88 | ) | (57 | ) | |||||||||||||
Cost associated with debt redemption | — | 11,741 | 10,895 | (11,741 | ) | 846 | ||||||||||||||
Reserve for fines and penalties, compliance matters | 10,000 | — | — | 10,000 | — | |||||||||||||||
Professional fees | 9,695 | 11,285 | 5,753 | (1,590 | ) | 5,532 | ||||||||||||||
Other | 34,032 | 27,001 | 26,940 | 7,031 | 61 | |||||||||||||||
Non-interest expense | $ | 241,092 | $ | 193,621 | $ | 161,615 | $ | 47,471 | $ | 32,006 | ||||||||||
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For the Years Ended | Change | Change | ||||||||||||||||||
Ended December 31, | 2005 vs | 2004 vs | ||||||||||||||||||
(In thousands) | 2005 | 2004 | 2003 | 2004 | 2003 | |||||||||||||||
Income before income taxes | $ | 86,658 | $ | 74,070 | $ | 63,718 | $ | 12,588 | $ | 10,352 | ||||||||||
Provision for income taxes | (30,838 | ) | (25,530 | ) | (21,589 | ) | (5,308 | ) | (3,941 | ) | ||||||||||
BankAtlantic net income | $ | 55,820 | $ | 48,540 | $ | 42,129 | $ | 7,280 | $ | 6,411 | ||||||||||
Effective tax rate | 35.59 | % | 34.47 | % | 33.88 | % | ||||||||||||||
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For the Years | Change | Change | ||||||||||||||||||
Ended December 31, | 2005 vs | 2004 vs | ||||||||||||||||||
2005 | 2004 | 2003 | 2004 | 2003 | ||||||||||||||||
Net interest income: | ||||||||||||||||||||
Interest on trading securities | $ | 14,511 | $ | 11,351 | $ | 10,437 | $ | 3,160 | $ | 914 | ||||||||||
Interest expense | (3,419 | ) | (924 | ) | (1,283 | ) | (2,495 | ) | 359 | |||||||||||
Net interest income | 11,092 | 10,427 | 9,154 | 665 | 1,273 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Principal transactions | 100,287 | 90,415 | 95,519 | 9,872 | (5,104 | ) | ||||||||||||||
Investment banking | 45,528 | 48,245 | 27,728 | (2,717 | ) | 20,517 | ||||||||||||||
Commissions | 83,074 | 89,289 | 85,176 | (6,215 | ) | 4,113 | ||||||||||||||
Other | 9,911 | 3,855 | 2,516 | 6,056 | 1,339 | |||||||||||||||
Non-interest income | 238,800 | 231,804 | 210,939 | 6,996 | 20,865 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Employee compensation and benefits | 165,325 | 158,868 | 147,358 | 6,457 | 11,510 | |||||||||||||||
Occupancy and equipment | 15,816 | 15,429 | 12,707 | 387 | 2,722 | |||||||||||||||
Advertising and promotion | 5,418 | 4,735 | 3,291 | 683 | 1,444 | |||||||||||||||
Professional fees | 6,706 | 5,482 | 10,467 | 1,224 | (4,985 | ) | ||||||||||||||
Communications | 13,554 | 12,527 | 13,783 | 1,027 | (1,256 | ) | ||||||||||||||
Floor broker and clearing fees | 9,118 | 9,835 | 9,227 | (717 | ) | 608 | ||||||||||||||
Other | 7,204 | 6,184 | 6,691 | 1,020 | (507 | ) | ||||||||||||||
Non-interest expense | 223,141 | 213,060 | 203,524 | 10,081 | 9,536 | |||||||||||||||
Income from continuing operations before income taxes | 26,751 | 29,171 | 16,569 | (2,420 | ) | 12,602 | ||||||||||||||
Income taxes | (10,095 | ) | (11,688 | ) | (6,924 | ) | 1,593 | (4,764 | ) | |||||||||||
Income from continuing operations | $ | 16,656 | $ | 17,483 | $ | 9,645 | $ | (827 | ) | $ | 7,838 | |||||||||
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For the Years | Change | Change | ||||||||||||||||||
Ended December 31, | 2005 vs | 2004 vs | ||||||||||||||||||
2005 | 2004 | 2003 | 2004 | 2003 | ||||||||||||||||
Net interest income (expense): | ||||||||||||||||||||
Interest on loans | $ | 556 | $ | 1,751 | $ | 1,488 | $ | (1,195 | ) | $ | 263 | |||||||||
Interest on short term investments | 1,701 | 756 | 234 | 945 | 522 | |||||||||||||||
Interest on junior subordinated debentures | (19,347 | ) | (16,958 | ) | (16,344 | ) | (2,389 | ) | (614 | ) | ||||||||||
Net interest income (expense) | (17,090 | ) | (14,451 | ) | (14,622 | ) | (2,639 | ) | 171 | |||||||||||
Non-interest income: | ||||||||||||||||||||
Income from unconsolidated subsidiaries | 621 | 485 | 425 | 136 | 60 | |||||||||||||||
Gains on securities activities | 731 | 3,693 | 404 | (2,962 | ) | 3,289 | ||||||||||||||
Litigation settlement | — | 22,840 | — | (22,840 | ) | 22,840 | ||||||||||||||
Investment banking expense | — | — | (635 | ) | — | 635 | ||||||||||||||
Other | 1,172 | 512 | — | 660 | 512 | |||||||||||||||
Non-interest income | 2,524 | 27,530 | 194 | (25,006 | ) | 27,336 | ||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Employee compensation and benefits | 4,047 | 3,042 | 90 | 1,005 | 2,952 | |||||||||||||||
Advertising and promotion | 422 | 289 | — | 133 | 289 | |||||||||||||||
Professional fees | 1,179 | 1,708 | 1,500 | (529 | ) | 208 | ||||||||||||||
Cost associated with debt redemption | — | — | 1,648 | — | (1,648 | ) | ||||||||||||||
Other | 515 | 603 | 600 | (88 | ) | 3 | ||||||||||||||
Non-interest expense | 6,163 | 5,642 | 3,838 | 521 | 1,804 | |||||||||||||||
(Loss) income before income taxes | (20,729 | ) | 7,437 | (18,266 | ) | (28,166 | ) | 25,703 | ||||||||||||
Income tax (expense) benefit | 7,435 | (2,692 | ) | 5,089 | 10,127 | (7,781 | ) | |||||||||||||
(Loss) income from continuing operations | $ | (13,294 | ) | $ | 4,745 | $ | (13,177 | ) | $ | (18,039 | ) | $ | 17,922 | |||||||
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• | Higher cash and due from depository institution balances resulting from lower cash letter receivables; | ||
• | Increase in securities owned and a decrease in due from clearing broker associated with Ryan Beck’s trading activities; | ||
• | Decline in securities available for sale reflecting an investment strategy to limit asset growth in response to the relatively flat yield curve during 2005; |
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• | Higher investment securities balances associated with a decision to invest in tax exempt securities during the first quarter of 2005 as after tax yields on these securities were more attractive than alternative investments; | ||
• | Lower investment in FHLB stock related to repayments of FHLB advances; | ||
• | Decline in loan receivable balances associated with lower commercial real estate loan balances primarily resulting from a decision to cease condominium lending; | ||
• | Increase in accrued interest receivable resulting from higher earning asset rates during 2005 compared to 2004; | ||
• | Lower real estate inventory related to closing of units by the Riverclub real estate joint venture acquired by BankAtlantic in connection with a financial institution acquisition during 2002; | ||
• | Increase in investment in unconsolidated subsidiaries due to an investment in a rental real estate joint venture during 2005; | ||
• | Increase in office properties and equipment associated with the Company’s new corporate headquarters building and BankAtlantic’s branch renovation and expansion initiatives; | ||
• | Increase in deferred tax asset primarily resulting from a decline in other comprehensive income; | ||
• | Higher other assets related to an increase in outstanding forgivable notes issued in connection with Ryan Beck’s recruitment and retention program. |
• | Higher deposit account balances resulting from the growth in low-cost deposits associated with “Florida’s Most Convenient Bank” and totally free checking account initiatives; | ||
• | Increase in secured borrowings associated with loan participations sold without recourse that are accounted for as borrowings; | ||
• | Repayments of short term borrowings funded from low cost deposit growth and a decline in total assets; | ||
• | Increase in development notes payable associated with the Riverclub real estate joint venture; | ||
• | Declines in securities sold but not yet purchased and due from clearing agent resulting from Ryan Beck’s trading activities; | ||
• | Increase in other liabilities associated with a $10 million reserve established for possible AML-BSA fines and penalties and an increase in deferred rent associated with operating leases executed for BankAtlantic’s branch and corporate facilities expansion. |
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Outstanding | ||||||||||||||||||||||||||||
on | ||||||||||||||||||||||||||||
December 31, | For the Period Ending December 31, (1) | |||||||||||||||||||||||||||
2005 | 2006 | 2007-2008 | 2009-2013 | 2014-2018 | 2019-2023 | >2024 | ||||||||||||||||||||||
Commercial real estate | $ | 2,551,969 | $ | 1,101,662 | $ | 897,973 | $ | 321,909 | $ | 153,853 | $ | 72,612 | $ | 3,960 | ||||||||||||||
Residential real estate | 2,045,593 | 33,935 | 36,489 | 39,691 | 172,306 | 254,375 | 1,508,797 | |||||||||||||||||||||
Consumer (2) | 541,518 | 3,108 | 2,270 | 30,730 | 343,242 | 162,168 | — | |||||||||||||||||||||
Commercial business | 170,485 | 99,423 | 25,663 | 40,267 | 5,132 | — | — | |||||||||||||||||||||
Total loans | $ | 5,309,565 | $ | 1,238,128 | $ | 962,395 | $ | 432,597 | $ | 674,533 | $ | 489,155 | $ | 1,512,757 | ||||||||||||||
Total securities available for sale (3) | $ | 585,099 | $ | 5,410 | $ | 79,682 | $ | 52,526 | $ | 143,622 | $ | 51,225 | $ | 252,634 | ||||||||||||||
(1) | Does not include deductions for the undisbursed portion of loans in process, deferred loan fees, unearned discounts and allowances for loan losses. | |
(2) | Includes second mortgage loans. |
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(3) | Does not include $89.4 million of equity securities available for sale. |
Commercial | Real Estate | |||||||||||
Business | Construction | Total | ||||||||||
One year or less | $ | 159,015 | $ | 1,131,113 | $ | 1,290,128 | ||||||
Over one year, but less than five years | 11,243 | 201,181 | 212,424 | |||||||||
Over five years | 227 | 7,505 | 7,732 | |||||||||
$ | 170,485 | $ | 1,339,799 | $ | 1,510,284 | |||||||
Due After One Year: | ||||||||||||
Pre-determined interest rate | $ | 11,470 | $ | 91,011 | $ | 102,481 | ||||||
Floating or adjustable interest rate | — | 117,675 | 117,675 | |||||||||
$ | 11,470 | $ | 208,686 | $ | 220,156 | |||||||
Florida | 57 | % | ||
California | 11 | % | ||
Northeast | 8 | % | ||
Other | 24 | % | ||
100 | % | |||
Minimum Ratios | ||||||||||||||||
Adequately | Well | |||||||||||||||
Actual | Capitalized | Capitalized | ||||||||||||||
Amount | Ratio | Ratio | Ratio | |||||||||||||
At December 31, 2005: | ||||||||||||||||
Total risk-based capital | $ | 512,664 | 11.50 | % | 8.00 | % | 10.00 | % | ||||||||
Tier 1 risk-based capital | $ | 446,419 | 10.02 | % | 4.00 | % | 6.00 | % | ||||||||
Tangible capital | $ | 446,419 | 7.42 | % | 1.50 | % | 1.50 | % | ||||||||
Core capital | $ | 446,419 | 7.42 | % | 4.00 | % | 5.00 | % | ||||||||
At December 31, 2004: | ||||||||||||||||
Total risk-based capital | $ | 476,600 | 10.80 | % | 8.00 | % | 10.00 | % | ||||||||
Tier 1 risk-based capital | $ | 405,482 | 9.19 | % | 4.00 | % | 6.00 | % | ||||||||
Tangible capital | $ | 405,482 | 6.83 | % | 1.50 | % | 1.50 | % | ||||||||
Core capital | $ | 405,482 | 6.83 | % | 4.00 | % | 5.00 | % |
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For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Net cash provided (used) by: | ||||||||||||
Operating activities | $ | 57,339 | $ | 67,295 | $ | 100,327 | ||||||
Investing activities | 118,615 | (1,457,098 | ) | 147,773 | ||||||||
Financing activities | (140,753 | ) | 1,404,981 | (378,963 | ) | |||||||
Increase (decrease) in cash and cash equivalents | $ | 35,201 | $ | 15,178 | $ | (130,863 | ) | |||||
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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 | $ | 621,397 | $ | 119,639 | $ | — | $ | — | $ | 501,758 | ||||||||||
Standby letters of credit | 67,868 | 67,868 | — | — | — | |||||||||||||||
Other commercial commitments | 333,990 | 333,990 | — | — | — | |||||||||||||||
Total commercial commitments | $ | 1,023,255 | $ | 521,497 | $ | — | $ | — | $ | 501,758 | ||||||||||
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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 | $ | 812,940 | $ | 662,535 | $ | 127,886 | $ | 21,943 | $ | 576 | ||||||||||
Long-term debt | 440,628 | 66,816 | 76,157 | 3,416 | 294,239 | |||||||||||||||
Advances from FHLB (1) | 1,283,532 | 762,532 | 409,000 | 32,000 | 80,000 | |||||||||||||||
Operating lease obligations | 88,998 | 15,386 | 27,950 | 17,791 | 27,871 | |||||||||||||||
Pension obligation | 13,004 | 890 | 1,893 | 2,549 | 7,672 | |||||||||||||||
Other obligations | 35,540 | 10,440 | 8,000 | 5,900 | 11,200 | |||||||||||||||
Securities sold but not yet purchased | 35,177 | 35,177 | — | — | — | |||||||||||||||
Total contractual cash obligations | $ | 2,709,819 | $ | 1,553,776 | $ | 650,886 | $ | 83,599 | $ | 421,558 | ||||||||||
(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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National | Broker | |||||||||||||||
Market price | Price | Valuation | ||||||||||||||
Quotes | Quotes | Model | Total | |||||||||||||
Securities: | ||||||||||||||||
Mortgage-backed securities | $ | — | $ | 381,540 | $ | — | $ | 381,540 | ||||||||
Tax exempt securities | — | 394,774 | — | 394,774 | ||||||||||||
Other securities | — | — | 588 | 588 | ||||||||||||
U.S. Treasury notes | — | 1,000 | — | 1,000 | ||||||||||||
Equity securities | 89,445 | — | — | 89,445 | ||||||||||||
Total securities | 89,445 | 777,314 | 588 | 867,347 | ||||||||||||
Brokerage industry securities and derivatives: | ||||||||||||||||
Securities owned | 180,292 | — | — | 180,292 | ||||||||||||
Securities sold not yet purchased | (35,177 | ) | — | — | (35,177 | ) | ||||||||||
Total Brokerage industry securities | 145,115 | — | — | 145,115 | ||||||||||||
Total | $ | 234,560 | $ | 777,314 | $ | 588 | $ | 1,012,462 | ||||||||
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2005 | 2004 | |||||||||||||||||||
Year Ended December 31, | vs. 2004 | vs. 2003 | ||||||||||||||||||
2005 | 2004 | 2003 | Change | Change | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Sales of real estate | $ | 558,112 | 549,652 | 283,058 | 8,460 | 266,594 | ||||||||||||||
Title and mortgage operations | 3,750 | 4,798 | 2,466 | (1,048 | ) | 2,332 | ||||||||||||||
Total revenues | 561,862 | 554,450 | 285,524 | 7,412 | 268,926 | |||||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of sales of real estate | 408,082 | 406,274 | 209,431 | 1,808 | 196,843 | |||||||||||||||
Selling, general and administrative expenses | 87,639 | 71,001 | 42,027 | 16,638 | 28,974 | |||||||||||||||
Other expenses | 4,855 | 7,600 | 1,924 | (2,745 | ) | 5,676 | ||||||||||||||
Total costs and expenses | 500,576 | 484,875 | 253,382 | 15,701 | 231,493 | |||||||||||||||
Earnings from Bluegreen Corporation | 12,714 | 13,068 | 7,433 | (354 | ) | 5,635 | ||||||||||||||
Earnings from joint ventures | 69 | 6,050 | 483 | (5,981 | ) | 5,567 | ||||||||||||||
Interest and other income | 13,278 | 4,619 | 3,162 | 8,659 | 1,457 | |||||||||||||||
Income before income taxes | 87,347 | 93,312 | 43,220 | (5,965 | ) | 50,092 | ||||||||||||||
Provision for income taxes | 32,436 | 35,897 | 16,400 | (3,461 | ) | 19,497 | ||||||||||||||
Net income | $ | 54,911 | 57,415 | 26,820 | (2,504 | ) | 30,595 | |||||||||||||
Basic earnings per share | $ | 2.77 | $ | 3.10 | $ | 1.81 | $ | (0.33 | ) | $ | 1.29 | |||||||||
Diluted earnings per share (a) | $ | 2.74 | $ | 3.04 | $ | 1.77 | $ | (0.30 | ) | $ | 1.27 | |||||||||
Weighted average shares outstanding | 19,817 | 18,518 | 14,816 | 1,299 | 3,702 | |||||||||||||||
Diluted shares outstanding | 19,929 | 18,600 | 14,816 | 1,329 | 3,784 |
(a) | Diluted earnings per share takes into account the dilution in earnings we recognize from Bluegreen as a result of outstanding securities issued by Bluegreen that enable the holders thereof to acquire shares of Bluegreen’s common stock. |
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2005 | 2004 | |||||||||||||||||||
Year Ended December 31, | vs. 2004 | vs. 2003 | ||||||||||||||||||
2005 | 2004 | 2003 | Change | Change | ||||||||||||||||
(Dollars in thousands, except average price data) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Sales of real estate | $ | 438,367 | 472,296 | 222,257 | (33,929 | ) | 250,039 | |||||||||||||
Title and mortgage operations | 3,750 | 4,798 | 2,466 | (1,048 | ) | 2,332 | ||||||||||||||
Total revenues | 442,117 | 477,094 | 224,723 | (34,977 | ) | 252,371 | ||||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of sales of real estate | 347,008 | 371,097 | 173,072 | (24,089 | ) | 198,025 | ||||||||||||||
Selling, general and administrative expenses | 57,403 | 50,806 | 29,478 | 6,597 | 21,328 | |||||||||||||||
Other expenses | 3,606 | 7,015 | 1,493 | (3,409 | ) | 5,522 | ||||||||||||||
Total costs and expenses | 408,017 | 428,918 | 204,043 | (20,901 | ) | 224,875 | ||||||||||||||
Earnings from joint ventures | 104 | 3,518 | 480 | (3,414 | ) | 3,038 | ||||||||||||||
Interest and other income | 723 | 1,944 | 560 | (1,221 | ) | 1,384 | ||||||||||||||
Income before income taxes | 34,927 | 53,638 | 21,720 | (18,711 | ) | 31,918 | ||||||||||||||
Provision for income taxes | 12,691 | 20,658 | 7,964 | (7,967 | ) | 12,694 | ||||||||||||||
Net income | $ | 22,236 | 32,980 | 13,756 | (10,744 | ) | 19,224 | |||||||||||||
Operational data: | ||||||||||||||||||||
Homes delivered | 1,789 | 2,126 | 1,011 | (337 | ) | 1,115 | ||||||||||||||
Construction starts | 1,662 | 2,294 | 1,593 | (632 | ) | 701 | ||||||||||||||
Average selling price of homes delivered | $ | 245,000 | 222,000 | 220,000 | 23,000 | 2,000 | ||||||||||||||
Margin percentage on homes delivered (a) | 20.8 | % | 21.4 | % | 22.1 | % | -0.6 | % | -0.7 | % | ||||||||||
New orders (units) | 1,767 | 1,679 | 2,240 | 88 | (561 | ) | ||||||||||||||
New orders (value) | $ | 547,045 | 427,916 | 513,436 | 119,129 | (85,520 | ) | |||||||||||||
Backlog of homes (units) | 1,792 | 1,814 | 2,053 | (22 | ) | (239 | ) | |||||||||||||
Backlog of homes (value) | $ | 557,325 | 448,647 | 458,771 | 108,678 | (10,124 | ) | |||||||||||||
Joint Ventures (excluded from above): | ||||||||||||||||||||
Homes delivered | — | 146 | 18 | (146 | ) | 128 | ||||||||||||||
Construction starts | — | — | 43 | — | (43 | ) | ||||||||||||||
New orders (units) | — | 42 | 61 | (42 | ) | (19 | ) | |||||||||||||
New orders (value) | $ | — | 13,967 | 15,957 | (13,967 | ) | (1,990 | ) | ||||||||||||
Backlog of homes (units) | — | — | 104 | — | (104 | ) | ||||||||||||||
Backlog of homes (value) | $ | — | — | 27,478 | — | (27,478 | ) |
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2005 | 2004 | |||||||||||||||||||
Year Ended December 31, | vs. 2004 | vs. 2003 | ||||||||||||||||||
2005 | 2004 | 2003 | Change | Change | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Sales of real estate | $ | 105,658 | 96,200 | 55,038 | 9,458 | 41,162 | ||||||||||||||
Total revenues | 105,658 | 96,200 | 55,038 | 9,458 | 41,162 | |||||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of sales of real estate | 50,706 | 42,838 | 31,362 | 7,868 | 11,476 | |||||||||||||||
Selling, general and administrative expenses | 12,395 | 10,373 | 7,549 | 2,022 | 2,824 | |||||||||||||||
Other expenses | 1,177 | 561 | 224 | 616 | 337 | |||||||||||||||
Total costs and expenses | 64,278 | 53,772 | 39,135 | 10,506 | 14,637 | |||||||||||||||
Interest and other income | 9,008 | 1,671 | 2,261 | 7,337 | (590 | ) | ||||||||||||||
Income before income taxes | 50,388 | 44,099 | 18,164 | 6,289 | 25,935 | |||||||||||||||
Provision for income taxes | 18,992 | 17,031 | 7,149 | 1,961 | 9,882 | |||||||||||||||
Net income | $ | 31,396 | 27,068 | 11,015 | 4,328 | 16,053 | ||||||||||||||
Operational data: | ||||||||||||||||||||
Acres sold | 1,647 | 1,212 | 1,337 | 435 | (125 | ) | ||||||||||||||
Margin percentage (a) | 52.0 | % | 55.5 | % | 43.0 | % | -3.5 | % | 12.5 | % | ||||||||||
Unsold acres | 12,092 | 8,349 | 5,116 | 3,743 | 3,233 | |||||||||||||||
Backlog of land (acres) | 238 | 1,833 | 1,433 | (1,596 | ) | 400 | ||||||||||||||
Backlog of land (sales value) | $ | 34,802 | 121,095 | 103,174 | (86,293 | ) | 17,921 |
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2005 | 2004 | |||||||||||||||||||
Year Ended December 31, | vs. 2004 | vs. 2003 | ||||||||||||||||||
2005 | 2004 | 2003 | Change | Change | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Sales of real estate | $ | 14,709 | 5,555 | 5,763 | 9,154 | (208 | ) | |||||||||||||
Total revenues | 14,709 | 5,555 | 5,763 | 9,154 | (208 | ) | ||||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of sales of real estate | 12,520 | 6,255 | 6,021 | 6,265 | 234 | |||||||||||||||
Selling, general and administrative expenses | 17,841 | 9,822 | 5,000 | 8,019 | 4,822 | |||||||||||||||
Other expenses | 72 | 24 | 207 | 48 | (183 | ) | ||||||||||||||
Total costs and expenses | 30,433 | 16,101 | 11,228 | 14,332 | 4,873 | |||||||||||||||
Earnings from Bluegreen Corporation | 12,714 | 13,068 | 7,433 | (354 | ) | 5,635 | ||||||||||||||
(Loss) earnings from joint ventures | (35 | ) | 2,532 | 3 | (2,567 | ) | 2,529 | |||||||||||||
Interest and other income | 4,106 | 1,004 | 341 | 3,102 | 663 | |||||||||||||||
Income before income taxes | 1,061 | 6,058 | 2,312 | (4,997 | ) | 3,746 | ||||||||||||||
Provision for income taxes | 378 | 2,198 | 891 | (1,820 | ) | 1,307 | ||||||||||||||
Net income | $ | 683 | 3,860 | 1,421 | (3,177 | ) | 2,439 | |||||||||||||
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• | a net increase in inventory of real estate of approximately $197.8 million resulting from land acquisitions in Florida, Georgia, Tennessee and South Carolina by our Land and Homebuilding Divisions, and increases in land development and construction costs. These increases in inventory of real estate were partially offset by sales of homes and land; | ||
• | a net increase of approximately $15.3 million in our investment in Bluegreen Corporation associated primarily with $15.0 million of earnings from Bluegreen (net of purchase accounting adjustments), $1.3 million from our pro rata share of unrealized gains associated with Bluegreen’s other comprehensive income and $121,000 associated with Bluegreen’s capital transactions, offset by the $1.3 million net cumulative effect of the restatement discussed above; and | ||
• | an increase of $13.1 million in property and equipment associated with increased investment in the irrigation facility and commercial properties under construction in Tradition, Florida (including the buildings constructed and utilized by Core Communities as its offices and sales center) and hardware and software acquired for our technology infrastructure upgrade. |
• | an increase of $8.7 million in customer deposits associated with our larger backlog at year end | ||
• | a net increase in notes and mortgage notes payable of $85.6 million, primarily related to project debt associated with the 2005 land acquisitions described above, and an increase in junior subordinated debentures of $54.1 million. | ||
• | an increase in the deferred tax liability of approximately $5.2 million which was primarily associated with our investment in Bluegreen. |
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Payments due by period | ||||||||||||||||||||
Less than | 13 – 36 | 37 – 60 | More than | |||||||||||||||||
Category | Total | 12 Months | Months | Months | 60 Months | |||||||||||||||
Long-term debt obligations | $ | 407,970 | 59,188 | 212,402 | 34,577 | 101,803 | ||||||||||||||
Interest payable on long-term debt | 199,185 | 25,487 | 41,949 | 17,606 | 114,143 | |||||||||||||||
Operating lease obligations | 8,065 | 1,965 | 2,920 | 1,454 | 1,726 | |||||||||||||||
Purchase obligations | 154,000 | 142,683 | 11,317 | — | — | |||||||||||||||
Total obligations | $ | 769,220 | 229,323 | 268,588 | 53,637 | 217,672 | ||||||||||||||
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As of December 31, 2005 | ||||||||||||||||||||
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 | $ | 108,345 | 143,853 | 115,881 | 368,720 | 736,799 | ||||||||||||||
Hybrids ARM less than 5 years | 201,105 | 199,917 | 68,248 | 1,782 | 471,052 | |||||||||||||||
Hybrids ARM more than 5 years | 192,063 | 193,864 | 168,954 | 275,873 | 830,754 | |||||||||||||||
Commercial loans | 1,588,787 | 193,581 | 66,447 | 3,228 | 1,852,043 | |||||||||||||||
Small business loans | 144,824 | 63,074 | 19,554 | 8,476 | 235,928 | |||||||||||||||
Consumer | 512,477 | 4,670 | 3,920 | 14,961 | 536,028 | |||||||||||||||
Total loans | 2,747,601 | 798,959 | 443,004 | 673,040 | 4,662,604 | |||||||||||||||
Investment securities | ||||||||||||||||||||
Tax exempt securities | 6,304 | 2,132 | 19,485 | 364,209 | 392,130 | |||||||||||||||
Taxable investment securities | 242,207 | 97,093 | 51,802 | 67,590 | 458,692 | |||||||||||||||
Tax certificates | 163,726 | — | — | — | 163,726 | |||||||||||||||
Total investment securities | 412,237 | 99,225 | 71,287 | 431,799 | 1,014,548 | |||||||||||||||
Total interest earning assets | 3,159,838 | 898,184 | 514,291 | 1,104,839 | 5,677,152 | |||||||||||||||
Total non-earning assets | — | — | — | 432,178 | 432,178 | |||||||||||||||
Total assets | $ | 3,159,838 | 898,184 | 514,291 | 1,537,017 | 6,109,330 | ||||||||||||||
Total interest bearing liabilities | $ | 2,723,748 | 844,077 | 291,394 | 1,614,248 | 5,473,467 | ||||||||||||||
Non-interest bearing liabilities | — | — | — | 635,863 | 635,863 | |||||||||||||||
Total non-interest bearing liabilities and equity | $ | 2,723,748 | 844,077 | 291,394 | 2,250,111 | 6,109,330 | ||||||||||||||
GAP (repricing difference) | $ | 436,090 | 54,107 | 222,897 | (509,409 | ) | ||||||||||||||
Cumulative GAP | $ | 436,090 | 490,197 | 713,094 | 203,685 | |||||||||||||||
Repricing Percentage | 7.14 | % | 0.89 | % | 3.65 | % | -8.34 | % | ||||||||||||
Cumulative Percentage | 7.14 | % | 8.02 | % | 11.67 | % | 3.33 | % | ||||||||||||
(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. |
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i. | Calculating interest income and interest expense from existing assets and liabilities using current repricing, 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 | ||
• | Reinvestment in earning assets. |
• | Fixed rate mortgages | 12 | % | |||||||
• | Fixed rate securities | 8 | % | |||||||
• | Tax certificates | 10 | % | |||||||
• | Adjustable rate mortgages | 17 | % | |||||||
• | Adjustable rate securities | 16 | % |
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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Net | ||||||||
Changes | Interest | Percent | ||||||
in Rate | Income | Change | ||||||
+200 bp | $ | 258,020 | 1.47 | % | ||||
+100 bp | 259,549 | 2.15 | ||||||
0 | 254,715 | 0.00 | ||||||
-100 bp | 247,130 | -3.37 | ||||||
-200 bp | 232,813 | -9.72 |
Net | ||||||||
Changes | Interest | Percent | ||||||
in Rate | Income | Change | ||||||
+200 bp | $ | 232,987 | 3.41 | % | ||||
+100 bp | 232,395 | 3.14 | ||||||
0 | 225,310 | 0.00 | ||||||
-100 bp | 213,516 | -5.23 | ||||||
-200 bp | 200,288 | -11.11 |
Available | ||||||||
Percent | for Sale | |||||||
Change in | Securities | Dollar | ||||||
Fair Value | Fair Value | Change | ||||||
20% | $ | 109,838 | $ | 18,306 | ||||
10% | 100,685 | 9,153 | ||||||
0% | 91,532 | — | ||||||
-10% | 82,379 | (9,153 | ) | |||||
-20% | 73,226 | (18,306 | ) |
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High | Low | Average | ||||||||||
VaR | $ | 443 | $ | 55 | $ | 206 | ||||||
Aggregate Long Value | 195,123 | 64,358 | 96,676 | |||||||||
Aggregate Short Value | 97,793 | 15,772 | 40,261 |
High | Low | Average | ||||||||||
VaR | $ | 1,747 | $ | 11 | $ | 336 | ||||||
Aggregate Long Value | 112,494 | 43,431 | 72,787 | |||||||||
Aggregate Short Value | 167,987 | 23,851 | 65,006 |
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Fair Market | ||||||||||||||||||||||||||||||||
Value at | ||||||||||||||||||||||||||||||||
Twelve months ended December 31, | December 31, | |||||||||||||||||||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | Thereafter | Total | 2005 | |||||||||||||||||||||||||
Fixed rate debts: | ||||||||||||||||||||||||||||||||
Notes and mortgage payable (a) | 735 | 2,091 | 872 | 208 | 219 | 70,511 | 74,636 | 70,591 | ||||||||||||||||||||||||
Average interest rate | 7.58 | % | 7.58 | % | 7.58 | % | 7.57 | % | 7.58 | % | 7.59 | % | 7.58 | % | ||||||||||||||||||
Variable rate debts: | ||||||||||||||||||||||||||||||||
Notes and mortgage payable (b) | 58,453 | 41,787 | 167,652 | 28,334 | 5,816 | 31,292 | 333,334 | 333,334 | ||||||||||||||||||||||||
Average interest rate | 7.35 | % | 7.07 | % | 6.67 | % | 6.90 | % | 7.27 | % | 7.30 | % | 6.77 | % | ||||||||||||||||||
Total debt obligations | 59,188 | 43,878 | 168,524 | 28,542 | 6,035 | 101,803 | 407,970 | 403,925 |
(a) | Fair value calculated based upon recent borrowings in same category of debt. | |
(b) | At December 31, 2005 Levitt’s total borrowings from BankAtlantic Bancorp was approximately $223,000. |
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F-2
Table of Contents
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
F-3
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F-4
Table of Contents
Fort Lauderdale, Florida
March 29, 2006
F-5
Table of Contents
Bluegreen Corporation
Certified Public Accountants
Miami, Florida
F-6
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Consolidated Statements of Financial Condition
(In thousands, except share data)
December 31, | ||||||||
2005 | 2004 | |||||||
ASSETS | ||||||||
Cash and due from depository institutions | $ | 302,208 | $ | 208,627 | ||||
Federal funds sold and other short-term investments | 3,229 | 16,093 | ||||||
Securities owned (at fair value) | 180,292 | 125,443 | ||||||
Securities available for sale (at fair value) | 676,660 | 749,001 | ||||||
Investment securities and tax certificates (approximate fair value: $384,646 and $317,416) | 384,968 | 317,891 | ||||||
Federal Home Loan Bank stock, at cost which approximates fair value | 69,931 | 78,619 | ||||||
Loans receivable, net of allowance for loan losses of $41,830 and $47,082 | 4,632,104 | 4,561,073 | ||||||
Accrued interest receivable | 41,496 | 35,995 | ||||||
Real estate held for development and sale | 632,597 | 444,631 | ||||||
Investments in unconsolidated affiliates | 110,124 | 89,090 | ||||||
Properties and equipment, net | 198,433 | 160,997 | ||||||
Goodwill | 77,981 | 77,981 | ||||||
Core deposit intangible asset | 8,395 | 10,270 | ||||||
Due from clearing agent | — | 16,619 | ||||||
Other assets | 65,608 | 62,517 | ||||||
Total assets | $ | 7,384,026 | $ | 6,954,847 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Deposits | ||||||||
Interest bearing deposits | $ | 2,732,727 | $ | 2,566,804 | ||||
Non-interest bearing deposits | 1,019,949 | 890,398 | ||||||
Total deposits | 3,752,676 | 3,457,202 | ||||||
Customer deposits on real estate held for sale | 51,686 | 43,022 | ||||||
Advances from FHLB | 1,283,532 | 1,544,497 | ||||||
Securities sold under agreements to repurchase | 109,788 | 257,002 | ||||||
Federal funds purchased | 139,475 | 105,000 | ||||||
Secured borrowings | 138,270 | — | ||||||
Subordinated debentures, notes and bonds payable | 392,784 | 278,605 | ||||||
Junior subordinated debentures | 317,390 | 263,266 | ||||||
Securities sold not yet purchased | 35,177 | 39,462 | ||||||
Due to clearing agent | 24,486 | — | ||||||
Deferred tax liabilities, net | 10,692 | 8,455 | ||||||
Other liabilities | 248,468 | 220,433 | ||||||
Total liabilities | 6,504,424 | 6,216,944 | ||||||
Noncontrolling interest | 696,522 | 612,652 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock of $.01 par value; authorized 10,000,000 shares; 5% Cumulative Convertible Preferred Stock (“5% Preferred Stock”) issued and outstanding 15,000 shares in 2005 and 2004 | — | — | ||||||
Class A common stock of $.01 par value, authorized 70,000,000 shares; issued and outstanding 29,949,612 in 2005 and 23,861,542 in 2004 | 278 | 217 | ||||||
Class B common stock of $.01 par value, authorized 20,000,000 shares; issued and outstanding 4,285,413 in 2005 and 4,279,656 in 2004 | 41 | 41 | ||||||
Additional paid-in capital | 97,223 | 50,962 | ||||||
Unearned compensation — restricted stock grants | (100 | ) | — | |||||
Retained earnings | 85,113 | 73,089 | ||||||
Total shareholders’ equity before accumulated other comprehensive income | 182,555 | 124,309 | ||||||
Accumulated other comprehensive income | 525 | 942 | ||||||
Total shareholders’ equity | 183,080 | 125,251 | ||||||
Total liabilities and shareholders’ equity | $ | 7,384,026 | $ | 6,954,847 | ||||
F-7
Table of Contents
Consolidated Statements of Operations
(In thousands, except per share data)
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Revenues | ||||||||||||
BFC Activities: | ||||||||||||
Interest and dividend income | $ | 1,591 | $ | 659 | $ | 390 | ||||||
Other income, net | 1,538 | 5,024 | 683 | |||||||||
3,129 | 5,683 | 1,073 | ||||||||||
Financial Services: | ||||||||||||
Interest and dividend income | 359,513 | 258,181 | 260,621 | |||||||||
Broker / dealer revenue | 236,850 | 231,524 | 210,304 | |||||||||
Other income | 100,535 | 111,873 | 70,985 | |||||||||
696,898 | 601,578 | 541,910 | ||||||||||
Homebuilding & Real Estate Development: | ||||||||||||
Sales of real estate | 558,112 | 549,652 | 283,058 | |||||||||
Interest and dividend income | 2,240 | 1,108 | 863 | |||||||||
Other income | 14,472 | 8,078 | 4,765 | |||||||||
574,824 | 558,838 | 288,686 | ||||||||||
1,274,851 | 1,166,099 | 831,669 | ||||||||||
Costs and Expenses | ||||||||||||
BFC Activities: | ||||||||||||
Interest expense | 346 | 393 | 373 | |||||||||
Employee compensation and benefits | 6,245 | 3,865 | 2,553 | |||||||||
Impairment of securities | — | 363 | 3,071 | |||||||||
Other expenses | 3,074 | 2,551 | 1,022 | |||||||||
9,665 | 7,172 | 7,019 | ||||||||||
Financial Services: | ||||||||||||
Interest expense, net of interest capitalized | 144,980 | 87,471 | 111,989 | |||||||||
Recovery of loan losses | (6,615 | ) | (5,109 | ) | (547 | ) | ||||||
Employee compensation and benefits | 282,898 | 255,064 | 226,940 | |||||||||
Occupancy and equipment | 57,437 | 48,146 | 40,036 | |||||||||
Impairment of office properties and equipment | 3,706 | — | 257 | |||||||||
Advertising and promotion | 32,735 | 21,036 | 12,724 | |||||||||
Amortization of intangible assets | 1,627 | 1,715 | 1,772 | |||||||||
Reserve for fines and penalties, compliance matters | 10,000 | — | — | |||||||||
Cost associated with debt redemption | — | 11,741 | 12,543 | |||||||||
Other expenses | 81,708 | 74,351 | 74,600 | |||||||||
608,476 | 494,415 | 480,314 | ||||||||||
Homebuilding & Real Estate Development: | ||||||||||||
Cost of sales of real estate | 407,190 | 403,900 | 209,431 | |||||||||
Interest expense, net of interest capitalized | — | 259 | 233 | |||||||||
Employee compensation and benefits | 42,489 | 35,321 | 19,845 | |||||||||
Selling, general and administrative expenses | 44,226 | 34,797 | 21,968 | |||||||||
Other expenses | 4,855 | 7,341 | 1,692 | |||||||||
498,760 | 481,618 | 253,169 | ||||||||||
1,116,901 | 983,205 | 740,502 | ||||||||||
Equity in earnings from unconsolidated affiliates | 13,404 | 19,603 | 10,126 | |||||||||
Income before income taxes and noncontrolling interest | 171,354 | 202,497 | 101,293 | |||||||||
Provision for income taxes | 70,256 | 84,103 | 44,226 | |||||||||
Noncontrolling interest | 91,144 | 103,994 | 51,093 | |||||||||
Income from continuing operations | 9,954 | 14,400 | 5,974 | |||||||||
Discontinued operations, less income tax provision (benefit) of $1,707 in 2005, $(106) in 2004 and $(577) in 2003 | 2,820 | (170 | ) | 1,048 | ||||||||
Net income | 12,774 | 14,230 | 7,022 | |||||||||
5% Preferred Stock dividends | 750 | 392 | — | |||||||||
Net income available to common shareholders | $ | 12,024 | $ | 13,838 | $ | 7,022 | ||||||
F-8
Table of Contents
Consolidated Statements of Operations
(In thousands, except per share data)
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Earnings per share: | ||||||||||||
Basic earnings per share from continuing operations | $ | 0.32 | $ | 0.58 | $ | 0.26 | ||||||
Basic earnings per share from discontinued operations | 0.10 | (0.01 | ) | 0.05 | ||||||||
Basic earnings per share | 0.42 | 0.57 | 0.31 | |||||||||
Diluted earnings per share from continuing operations | $ | 0.29 | $ | 0.48 | $ | 0.21 | ||||||
Diluted earnings per share from discontinued operations | 0.09 | (0.01 | ) | 0.04 | ||||||||
Diluted earnings per share | 0.38 | 0.47 | 0.25 | |||||||||
Basic weighted average number of common shares outstanding | 28,952 | 24,183 | 22,818 | |||||||||
Diluted weighted average number of common and common equivalent shares outstanding | 31,219 | 27,806 | 26,031 |
F-9
Table of Contents
Consolidated Statements of Comprehensive Income
(In thousands)
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Net income | $ | 12,774 | 14,230 | $ | 7,022 | |||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized (loss) gains on securities available for sale, | (365 | ) | 448 | (988 | ) | |||||||
Minimum pension liability | (132 | ) | (662 | ) | 1,018 | |||||||
Unrealized gain (loss) associated with investment in unconsolidated affiliates | 152 | (42 | ) | 121 | ||||||||
Accumulated gains associated with cash flow hedges | — | — | 315 | |||||||||
Reclassification adjustment for cash flow hedges | — | — | 70 | |||||||||
Reclassification adjustment for net (gain) losses included in net income | (72 | ) | (332 | ) | 126 | |||||||
(417 | ) | (588 | ) | 662 | ||||||||
Comprehensive income | $ | 12,357 | 13,642 | $ | 7,684 | |||||||
F-10
Table of Contents
Consolidated Statements of Shareholders’ Equity
For each of the years in the three year period ended December 31, 2005
(In thousands)
Unearned | Accumulated | |||||||||||||||||||||||||||
Compen- | Other | |||||||||||||||||||||||||||
sation | Compre- | |||||||||||||||||||||||||||
Class A | Class B | Additional | Restricted | hensive | ||||||||||||||||||||||||
Common | Common | Paid-in | Stock | Retained | Income | |||||||||||||||||||||||
Stock | Stock | Capital | Grants | Earnings | (Loss) | Total | ||||||||||||||||||||||
Balance, December 31, 2002 | $ | 58 | $ | 21 | $ | 24,077 | $ | — | $ | 52,387 | $ | 868 | $ | 77,411 | ||||||||||||||
Net income | — | — | — | — | 7,022 | — | 7,022 | |||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | — | — | — | 662 | 662 | |||||||||||||||||||||
Net effect of subsidiaries capital transactions, net of taxes | — | — | (252 | ) | — | — | — | (252 | ) | |||||||||||||||||||
Common stock splits | 104 | — | — | — | (104 | ) | — | — | ||||||||||||||||||||
Issuance of common stock | 1 | 2 | 279 | — | — | — | 282 | |||||||||||||||||||||
Tax effect relating to the exercise of stock options | — | — | 550 | — | — | — | 550 | |||||||||||||||||||||
Balance, December 31, 2003 | $ | 163 | $ | 23 | $ | 24,654 | $ | — | $ | 59,305 | $ | 1,530 | $ | 85,675 | ||||||||||||||
Net income | — | — | — | 14,230 | — | 14,230 | ||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | — | — | (588 | ) | (588 | ) | |||||||||||||||||||
Net effect of subsidiaries’ capital transactions, net of taxes | — | — | 5,812 | — | — | — | 5,812 | |||||||||||||||||||||
Retirement of Common Stock | — | (6 | ) | (7,276 | ) | — | — | — | (7,282 | ) | ||||||||||||||||||
Issuance of Common Stock | — | 24 | 1,767 | — | — | — | 1,791 | |||||||||||||||||||||
Issuance of 5% Preferred Stock | — | — | 14,988 | — | — | — | 14,988 | |||||||||||||||||||||
Cash dividends on 5% Preferred Stock | — | — | — | — | (392 | ) | — | (392 | ) | |||||||||||||||||||
Common stock split | 54 | — | — | — | (54 | ) | — | — | ||||||||||||||||||||
Tax effect relating to the exercise of stock options | — | — | 11,017 | — | — | — | 11,017 | |||||||||||||||||||||
Balance, December 31, 2004 | $ | 217 | $ | 41 | $ | 50,962 | $ | — | $ | 73,089 | $ | 942 | $ | 125,251 | ||||||||||||||
Net income | — | — | — | — | 12,774 | — | 12,774 | |||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | — | — | (417 | ) | (417 | ) | |||||||||||||||||||
Issuance of Class A Common Stock, net of stock issuance costs | 61 | — | 46,547 | — | — | — | 46,608 | |||||||||||||||||||||
Issuance of Class A restricted stock | — | — | 200 | (200 | ) | — | — | — | ||||||||||||||||||||
Net effect of subsidiaries’ capital transactions, net of taxes | — | — | (474 | ) | — | — | — | (474 | ) | |||||||||||||||||||
Cash dividends on 5% Preferred Stock | — | — | — | — | (750 | ) | — | (750 | ) | |||||||||||||||||||
Amortization of unearned compensation on restricted stock grants | — | — | — | 100 | — | — | 100 | |||||||||||||||||||||
Tax effect relating to share-based compensation | — | — | (12 | ) | — | — | — | (12 | ) | |||||||||||||||||||
Balance, December 31, 2005 | $ | 278 | $ | 41 | $ | 97,223 | $ | (100 | ) | $ | 85,113 | $ | 525 | $ | 183,080 | |||||||||||||
F-11
Table of Contents
Consolidated Statements of Cash Flows
(In thousands)
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Operating activities: | ||||||||||||
Income from continuing operations | $ | 9,954 | $ | 14,400 | 5,974 | |||||||
Income (loss) from discontinued operations | 2,820 | (170 | ) | 1,048 | ||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||||
Noncontrolling interest | 91,144 | 103,994 | 51,093 | |||||||||
(Recovery) provision for loan losses, real estate owned and tax certificates | (6,265 | ) | (5,105 | ) | 1,465 | |||||||
Depreciation, amortization and accretion, net | 18,508 | 17,577 | 19,167 | |||||||||
Amortization of intangible assets | 1,627 | 1,715 | 1,772 | |||||||||
Securities activities, net | (847 | ) | (7,198 | ) | 1,110 | |||||||
Impairment of securities | — | 362 | 3,071 | |||||||||
Net gain on transfer of net assets for settlement of note (Note 3) | (3,439 | ) | — | — | ||||||||
Net gains on sale of real estate owned | (1,840 | ) | (694 | ) | (1,984 | ) | ||||||
Net gains on sales of loans held for sale | (742 | ) | (483 | ) | (122 | ) | ||||||
Net (gains) losses on sales of property and equipment | (277 | ) | 17 | 45 | ||||||||
Gain on sale of branch | (922 | ) | — | — | ||||||||
Distribution of earnings of unconsolidated affiliates | 621 | 485 | — | |||||||||
Equity earnings of unconsolidated affiliates | (13,404 | ) | (19,603 | ) | (10,126 | ) | ||||||
Increase in deferred tax liabilities, net | 3,511 | 17,894 | 13,073 | |||||||||
Litigation settlement | — | (23,987 | ) | — | ||||||||
Cost associated with debt redemption | — | 11,741 | 12,543 | |||||||||
Impairment of properties and equipment | 3,706 | — | 257 | |||||||||
Reserve for fines and penalties, compliance matters | 10,000 | — | — | |||||||||
Increase of forgivable notes receivable, net | (6,999 | ) | (8,079 | ) | (6,260 | ) | ||||||
Originations and repayments of loans held for sale, net | (125,487 | ) | (163,988 | ) | (32,494 | ) | ||||||
Proceeds from sales of loans held for sale | 128,337 | 171,192 | 44,739 | |||||||||
Increase in real estate inventory | (191,610 | ) | (142,511 | ) | (55,206 | ) | ||||||
Increase in securities owned, net | (54,849 | ) | (878 | ) | (43,194 | ) | ||||||
(Decrease) increase in securities sold but not yet purchased | (4,285 | ) | 1,649 | 3,591 | ||||||||
(Increase) decrease in accrued interest receivable | (5,501 | ) | (8,093 | ) | 6,124 | |||||||
(Increase) decrease in other assets | 2,556 | (507 | ) | (7,526 | ) | |||||||
Increase (decrease) in due to clearing agent | 41,105 | (25,202 | ) | 10,353 | ||||||||
Increase in other liabilities | 23,712 | 47,525 | 77,520 | |||||||||
Net cash (used in) provided by operating activities | (78,866 | ) | (17,947 | ) | 96,033 | |||||||
Investing activities: | ||||||||||||
Proceeds from redemption and maturities of investment securities and tax certificates | 210,493 | 212,983 | (205,209 | ) | ||||||||
Purchase of investment securities and tax certificates | (278,509 | ) | (311,825 | ) | 205,677 | |||||||
Purchase of securities available for sale | (227,179 | ) | (677,050 | ) | (279,127 | ) | ||||||
Proceeds from sales and maturities of securities available for sale | 300,469 | 308,529 | 631,350 | |||||||||
Purchases of FHLB stock | (29,870 | ) | (49,923 | ) | (7,021 | ) | ||||||
Redemption of FHLB stock | 38,558 | 11,629 | 31,639 | |||||||||
Repayments from investments in unconsolidated affiliates | 447 | 10,084 | — | |||||||||
Investment in real estate joint ventures | (6,228 | ) | (127 | ) | 1,044 | |||||||
Net repayments (purchases and originations) of loans | 105,186 | (928,493 | ) | (235,735 | ) | |||||||
Proceeds from sales of real estate owned | 3,872 | 3,821 | 10,807 | |||||||||
Proceeds from the sale of property and equipment | 651 | — | 1,705 | |||||||||
Additions to office property and equipment | (56,335 | ) | (74,924 | ) | (14,349 | ) | ||||||
Cash outflows from the sale of branch (Note 4) | (13,605 | ) | — | — | ||||||||
Net cash proceeds (outflows) from the sale of Ryan Beck’s subsidiaries (Note 3) | — | (6,109 | ) | 9,955 | ||||||||
Net cash provided by (used in) investing activities | 47,950 | (1,501,405 | ) | 150,736 | ||||||||
F-12
Table of Contents
Consolidated Statements of Cash Flows
(In thousands)
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Financing activities: | ||||||||||||
Net increase in deposits | $ | 313,190 | 399,060 | 137,587 | ||||||||
Repayments of FHLB advances | (1,506,832 | ) | (469,323 | ) | (799,991 | ) | ||||||
Proceeds from FHLB advances | 1,246,000 | 1,220,000 | 275,000 | |||||||||
Net increase (decrease) in securities sold under agreements to repurchase | (147,214 | ) | 133,119 | 4,767 | ||||||||
Net increase in federal funds purchased | 34,475 | 105,000 | — | |||||||||
Repayments of secured borrowings | (101,924 | ) | — | — | ||||||||
Proceeds from secured borrowings | 65,293 | |||||||||||
Repayment of notes and bonds payable | (266,432 | ) | (227,621 | ) | (112,563 | ) | ||||||
Proceeds from notes and bonds payable | 388,781 | 325,401 | 134,016 | |||||||||
Issuance of junior subordinated debentures | 54,124 | — | 77,320 | |||||||||
Retirement of subordinated notes and debentures | — | — | (70,855 | ) | ||||||||
Change in noncontrolling interest | 895 | — | — | |||||||||
Payments for debt issuance costs | (3,498 | ) | — | — | ||||||||
Proceeds from the issuance of BFC Class A Common Stock, net of issuance costs | 46,436 | — | — | |||||||||
Proceeds from the issuance of BFC common stock upon exercise of stock options | 172 | 1,791 | 282 | |||||||||
Payment by BFC of the minimum witholding tax upon exercise of stock option | — | (7,282 | ) | — | ||||||||
5% Preferred Stock dividends paid | (750 | ) | (392 | ) | — | |||||||
Proceeds from the issuance of 5% Preferred Stock, net of issuance cost | — | 14,988 | — | |||||||||
Issuance of Levitt Corporation common stock, net of issuance cost | — | 114,769 | — | |||||||||
Payment by BankAtlantic Bancorp of the minimum withholding tax upon exercise of stock options | (3,519 | ) | (2,946 | ) | — | |||||||
Proceeds from issuance of BankAtlantic Bancorp Class A common stock | 1,179 | 2,334 | 4,472 | |||||||||
Purchase of BankAtlantic Bancorp subsidiary common stock | (491 | ) | — | — | ||||||||
BankAtlantic Bancorp common stock dividends paid to non-BFC shareholders | (6,930 | ) | (6,331 | ) | (5,839 | ) | ||||||
Levitt common stock dividends paid to non-BFC shareholders | (1,322 | ) | (661 | ) | — | |||||||
Venture Partneships distribution paid to non-BFC partners | — | (1,376 | ) | — | ||||||||
Net cash provided by financing activities | 111,633 | 1,600,530 | (355,804 | ) | ||||||||
Increase (decrease) in cash and cash equivalents | 80,717 | 81,178 | (109,035 | ) | ||||||||
Cash and cash equivalents at beginning of period | 224,720 | 143,542 | 252,577 | |||||||||
Cash and cash equivalents at end of period | $ | 305,437 | $ | 224,720 | 143,542 | |||||||
F-13
Table of Contents
Consolidated Statements of Cash Flows
(In thousands)
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Supplemental cash flow information: | ||||||||||||
Interest on borrowings and deposits, net of amounts capitalized | $ | 143,499 | $ | 89,193 | 121,384 | |||||||
Income taxes paid | 30,002 | 56,044 | 31,115 | |||||||||
Supplementary disclosure of non-cash investing and financing activities: | ||||||||||||
Loans transferred to real estate owned | 2,307 | 1,401 | 2,450 | |||||||||
Net loan recoveries | 1,797 | 5,524 | (1,146 | ) | ||||||||
Tax certificate net charge-offs | (377 | ) | (427 | ) | (203 | ) | ||||||
Decreases in current income taxes payable from the tax effect of fair value of employee stock options | 4,538 | 6,610 | 2,264 | |||||||||
Securities purchased pending settlement | 6,183 | 25,546 | — | |||||||||
Decrease in noncontrolling interest resulting from the retirement of BankAtlantic Bancorp Class A common stock obtained from litigation settlement | — | 6,058 | — | |||||||||
Increase in joint venture investment resulting from unrealized gain on non-monetary exchange | — | 409 | — | |||||||||
(Decrease) increase in accumulated other comprehensive income, net of taxes | (417 | ) | (588 | ) | 662 | |||||||
Net increase (decrease) in shareholders’ equity from the effect of subsidiaries’ capital transactions, net of income taxes | (474 | ) | 5,812 | (252 | ) | |||||||
(Decrease) increase in shareholders’ equity for the tax effect relating to share-based compensation | (12 | ) | 11,017 | 550 | ||||||||
Fair value of assets acquired from acquisition of Bowden Building Corporation | — | 26,463 | — | |||||||||
Fair value of liabilities assumed from acquisition of Bowden Building Corporation | — | 20,354 | — | |||||||||
Decrease in real estate inventory to property and equipment | (1,809 | ) | — | — | ||||||||
Increase in property and equipment from inventory | 1,809 | — | — | |||||||||
Note receivable issued in connection with the GMS sale | — | — | 13,681 | |||||||||
Acquisition goodwill adjustments | — | — | 734 | |||||||||
Securities held to maturity transferred to available for sale | — | — | 14,505 | |||||||||
Transfer of relocated branch to real estate held for sale | — | — | 1,000 | |||||||||
Increase in investments in unconsolidated affiliates related to deconsolidation of trusts formed to issue trust preferred securities | — | — | 7,910 | |||||||||
Increase in junior subordinated debentures related to trust deconsolidation | — | — | 7,910 | |||||||||
Transfer of guaranteed preferred beneficial interest in BankAtlantic Bancorp’s Junior Subordinated Debentures to junior subordinated debentures | — | — | 180,375 | |||||||||
Change in noncontrolling interest resulting from issuance of BankAtlantic Bancorp Class A common stock upon conversion of subordinated debentures | — | — | 211 |
F-14
Table of Contents
Notes to Consolidated Financial Statements
F-15
Table of Contents
Notes to Consolidated Financial Statements
Percent of | Percent | |||||||||||
Shares | Economic | of | ||||||||||
Owned | Ownership | Vote | ||||||||||
BankAtlantic Bancorp | ||||||||||||
Class A Common Stock | 8,329,236 | 14.90 | % | 7.90 | % | |||||||
Class B Common Stock | 4,876,124 | 100.00 | % | 47.00 | % | |||||||
Total | 13,205,360 | 21.73 | % | 54.90 | % | |||||||
Levitt | ||||||||||||
Class A Common Stock | 2,074,243 | 11.15 | % | 5.91 | % | |||||||
Class B Common Stock | 1,219,031 | 100.00 | % | 47.00 | % | |||||||
Total | 3,293,274 | 16.62 | % | 52.91 | % |
F-16
Table of Contents
Notes to Consolidated Financial Statements
F-17
Table of Contents
Notes to Consolidated Financial Statements
F-18
Table of Contents
Notes to Consolidated Financial Statements
F-19
Table of Contents
Notes to Consolidated Financial Statements
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Interest expense | $ | 166,469 | $ | 100,361 | $ | 121,479 | ||||||
Interest capitalized | (21,143 | ) | (12,238 | ) | (8,884 | ) | ||||||
Interest expense, net | $ | 145,326 | $ | 88,123 | $ | 112,595 | ||||||
F-20
Table of Contents
Notes to Consolidated Financial Statements
F-21
Table of Contents
Notes to Consolidated Financial Statements
For the Years Ended December 31, | ||||||||||||
(In thousands, except per share data) | 2005 | 2004 | 2003 | |||||||||
Pro forma net income | ||||||||||||
Net income available to common shareholders, as reported | $ | 12,024 | $ | 13,838 | $ | 7,022 | ||||||
Add: Stock-based employee compensation expense included in reported net income, net of related tax effects and noncontrolling interest | 51 | 38 | 51 | |||||||||
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards, net of related income tax effects and noncontrolling interest | (1,168 | ) | (897 | ) | (646 | ) | ||||||
aaaaaaaaaa | ||||||||||||
Pro forma net income | $ | 10,907 | $ | 12,979 | $ | 6,427 | ||||||
Earnings per share: | ||||||||||||
Basic as reported | $ | 0.42 | $ | 0.57 | $ | 0.31 | ||||||
Basic pro forma | $ | 0.38 | $ | 0.54 | $ | 0.28 | ||||||
Diluted as reported | $ | 0.38 | $ | 0.47 | $ | 0.25 | ||||||
Diluted pro forma | $ | 0.34 | $ | 0.44 | $ | 0.23 | ||||||
F-22
Table of Contents
Notes to Consolidated Financial Statements
F-23
Table of Contents
Notes to Consolidated Financial Statements
F-24
Table of Contents
Notes to Consolidated Financial Statements
Homebuilding | Adjusting | |||||||||||||||||||
BFC | Financial | & Real Estate | and | |||||||||||||||||
2005 | Activities | Services | Development | Eliminations | Total | |||||||||||||||
Revenues: | ||||||||||||||||||||
Sales of real estate | $ | — | $ | — | $ | 558,112 | $ | — | $ | 558,112 | ||||||||||
Interest and dividend income | 1,623 | 360,405 | 2,556 | (1,240 | ) | 363,344 | ||||||||||||||
Broker/dealer revenue | — | 238,800 | — | (1,950 | ) | 236,850 | ||||||||||||||
Other income | 1,750 | 101,678 | 14,472 | (1,355 | ) | 116,545 | ||||||||||||||
3,373 | 700,883 | 575,140 | (4,545 | ) | 1,274,851 | |||||||||||||||
Costs and Expenses: | ||||||||||||||||||||
Cost of sale of real estate | — | — | 408,082 | (892 | ) | 407,190 | ||||||||||||||
Interest expense, net | 346 | 145,328 | — | (348 | ) | 145,326 | ||||||||||||||
Recovery for loan losses | — | (6,615 | ) | — | — | (6,615 | ) | |||||||||||||
Other expenses | 9,750 | 470,111 | 92,494 | (1,355 | ) | 571,000 | ||||||||||||||
10,096 | 608,824 | 500,576 | (2,595 | ) | 1,116,901 | |||||||||||||||
(6,723 | ) | 92,059 | 74,564 | (1,950 | ) | 157,950 | ||||||||||||||
Equity in earnings from unconsolidated affiliates | — | 621 | 12,783 | — | 13,404 | |||||||||||||||
Income (loss) before income taxes | (6,723 | ) | 92,680 | 87,347 | (1,950 | ) | 171,354 | |||||||||||||
Provision (benefit) for income taxes | 5,130 | 33,498 | 32,436 | (808 | ) | 70,256 | ||||||||||||||
Income (loss) before non controlling interest | (11,853 | ) | 59,182 | 54,911 | (1,142 | ) | 101,098 | |||||||||||||
Noncontrolling interest in income of consolidated subsidiaries | 6 | 46,246 | 45,786 | (894 | ) | 91,144 | ||||||||||||||
Income (loss) from continuing operations | $ | (11,859 | ) | $ | 12,936 | $ | 9,125 | $ | (248 | ) | $ | 9,954 | ||||||||
At December 31, 2005 | ||||||||||||||||||||
Total assets | $ | 54,118 | $ | 6,471,411 | $ | 895,673 | $ | (37,176 | ) | $ | 7,384,026 | |||||||||
F-25
Table of Contents
Notes to Consolidated Financial Statements
Homebuilding | Adjusting | |||||||||||||||||||
BFC | Financial | & Real Estate | and | |||||||||||||||||
2004 | Activities | Services | Development | Eliminations | Total | |||||||||||||||
Revenues: | ||||||||||||||||||||
Sales of real estate | $ | — | $ | — | $ | 549,652 | $ | — | $ | 549,652 | ||||||||||
Interest and dividend income | 680 | 260,555 | 1,338 | (2,625 | ) | 259,948 | ||||||||||||||
Broker/dealer revenue | — | 231,804 | — | (280 | ) | 231,524 | ||||||||||||||
Other income | 5,335 | 112,500 | 8,078 | (938 | ) | 124,975 | ||||||||||||||
6,015 | 604,859 | 559,068 | (3,843 | ) | 1,166,099 | |||||||||||||||
Costs and Expenses: | ||||||||||||||||||||
Cost of sale of real estate | — | — | 406,274 | (2,374 | ) | 403,900 | ||||||||||||||
Interest expense, net | 393 | 87,722 | 259 | (251 | ) | 88,123 | ||||||||||||||
Recovery for loan losses | — | (5,109 | ) | — | — | (5,109 | ) | |||||||||||||
Other expenses | 7,187 | 412,053 | 78,269 | (1,218 | ) | 496,291 | ||||||||||||||
7,580 | 494,666 | 484,802 | (3,843 | ) | 983,205 | |||||||||||||||
(1,565 | ) | 110,193 | 74,266 | — | 182,894 | |||||||||||||||
Equity in earnings from unconsolidated Subsidiaries | — | 485 | 19,118 | — | 19,603 | |||||||||||||||
(Loss) income before income taxes | (1,565 | ) | 110,678 | 93,384 | — | 202,497 | ||||||||||||||
Provision for income taxes | 8,171 | 39,910 | 36,022 | — | 84,103 | |||||||||||||||
Income (loss) from continuing operations before noncontrolling interest | (9,736 | ) | 70,768 | 57,362 | — | 118,394 | ||||||||||||||
Noncontrolling interest in income of consolidated subsidiaries | 1,822 | 55,074 | 47,098 | — | 103,994 | |||||||||||||||
(Loss) income from continuing operations | $ | (11,558 | ) | $ | 15,694 | $ | 10,264 | $ | — | $ | 14,400 | |||||||||
Total assets at December 31, 2004 | $ | 26,596 | $ | 6,356,777 | $ | 678,467 | $ | (106,993 | ) | $ | 6,954,847 | |||||||||
Homebuilding | Adjusting | |||||||||||||||||||
BFC | Financial | and Real Estate | and | |||||||||||||||||
2003 | Activities | Services | Development | Eliminations | Total | |||||||||||||||
Revenues: | ||||||||||||||||||||
Sales of real estate | $ | — | $ | — | $ | 283,058 | $ | — | $ | 283,058 | ||||||||||
Interest and dividend income | 390 | 261,849 | 863 | (1,228 | ) | 261,874 | ||||||||||||||
Broker/dealer revenue | — | 210,304 | — | — | 210,304 | |||||||||||||||
Other income | 897 | 70,985 | 4,765 | (214 | ) | 76,433 | ||||||||||||||
1,287 | 543,138 | 288,686 | (1,442 | ) | 831,669 | |||||||||||||||
Costs and Expenses: | ||||||||||||||||||||
Cost of sale of real estate | — | — | 209,431 | — | 209,431 | |||||||||||||||
Interest expense, net | 373 | 113,217 | 233 | (1,228 | ) | 112,595 | ||||||||||||||
Recovery for loan losses | — | (547 | ) | — | — | (547 | ) | |||||||||||||
Other expenses | 6,646 | 368,872 | 43,718 | (213 | ) | 419,023 | ||||||||||||||
7,019 | 481,542 | 253,382 | (1,441 | ) | 740,502 | |||||||||||||||
(5,732 | ) | 61,596 | 35,304 | (1 | ) | 91,167 | ||||||||||||||
Equity in earnings from unconsolidated Subsidiaries | — | 425 | 7,916 | 1,785 | 10,126 | |||||||||||||||
(Loss) income before income taxes | (5,732 | ) | 62,021 | 43,220 | 1,784 | 101,293 | ||||||||||||||
Provision for income taxes | 3,774 | 23,424 | 16,400 | 628 | 44,226 | |||||||||||||||
(Loss) income from continuing operations before noncontrolling interest | (9,506 | ) | 38,597 | 26,820 | 1,156 | 57,067 | ||||||||||||||
Noncontrolling interest in income (loss) of consolidated subsidiaries | (1,401 | ) | 31,709 | 20,785 | — | 51,093 | ||||||||||||||
(Loss) income from continuing operations | (8,105 | ) | 6,888 | 6,035 | 1,156 | 5,974 | ||||||||||||||
Total assets at December 31, 2003 | $ | 14,388 | $ | 4,831,549 | $ | 393,505 | $ | (103,207 | ) | $ | 5,136,235 | |||||||||
F-26
Table of Contents
Notes to Consolidated Financial Statements
2005 | 2004 | 2003 | ||||||||||
BFC Activities — Revenues | ||||||||||||
Other income | $ | 117 | $ | 502 | $ | 635 | ||||||
BFC Activities — Expenses | ||||||||||||
Interest expense | 736 | 778 | 790 | |||||||||
Gain on disposition | 5,146 | — | — | |||||||||
Income (loss) from discontinued operations | 4,527 | (276 | ) | (155 | ) | |||||||
Provision (benefit) for income taxes | 1,707 | (106 | ) | (60 | ) | |||||||
Income (loss) from discontinued operations, net of tax | $ | 2,820 | $ | (170 | ) | $ | (95 | ) | ||||
Investment in real estate, net | $ | 3,355 | ||
Other assets | 556 | |||
Total assets | $ | 3,911 | ||
Mortgage payable | $ | 8,232 | ||
Other liabilities | 143 | |||
Total liabilities | $ | 8,375 | ||
F-27
Table of Contents
Notes to Consolidated Financial Statements
(in thousands) | 2003 | |||
Revenues: | ||||
Interest income | $ | 6,279 | ||
Investment banking income | 17,782 | |||
Other | 1,375 | |||
25,436 | ||||
Expenses: | ||||
Interest expense | 1,039 | |||
Employee compensation and benefits | 17,377 | |||
Other | 6,394 | |||
24,810 | ||||
Income before income taxes | 626 | |||
(Benefit) for income taxes | (517 | ) | ||
Income from discontinued operations, net of tax | $ | 1,143 | ||
Cash | $ | 815 | ||
Securities owned | 105,083 | |||
Property and equipment | 559 | |||
Goodwill | 1,204 | |||
Other assets | 5,479 | |||
Securities sold but not yet purchased | (3,781 | ) | ||
Due to clearing agent | (80,561 | ) | ||
Other liabilities | (4,347 | ) | ||
Net assets sold or transferred | 24,451 | |||
Notes receivable — GMS Holdings, Inc. | (13,681 | ) | ||
Cash sold | (815 | ) | ||
Net cash proceeds received | $ | 9,955 | ||
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Notes to Consolidated Financial Statements
Amount | ||||
Assets sold: | ||||
Loans | $ | 2,235 | ||
Property and equipment | 733 | |||
Liabilities transferred: | ||||
Deposits | (17,716 | ) | ||
Accrued interest payable | (27 | ) | ||
Net assets sold | (14,775 | ) | ||
Write-off of core deposit intangible assets | 248 | |||
Gain on sale of branch (1) | 922 | |||
Net cash outflows from sale of branch | $ | (13,605 | ) | |
(1) | The gain on sale of branch is included in other income in the Company’s Consolidated Statements of Operations. |
Available for Sale | ||||||||||||||||||||||||||||||||
December 31, 2005 | December 31, 2004 | |||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | |||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||
Cost | Appreciation | Depreciation | Fair Value | Cost | Appreciation | Depreciation | Fair Value | |||||||||||||||||||||||||
Mortgage-Backed Securities: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 337,381 | $ | 1,547 | $ | 4,749 | $ | 334,179 | $ | 401,566 | $ | 3,848 | $ | 1,587 | $ | 403,827 | ||||||||||||||||
Real estate mortgage investment conduits | 49,797 | — | 2,436 | 47,361 | 96,938 | 188 | 436 | 96,690 | ||||||||||||||||||||||||
Total mortgage - -backed securities | 387,178 | 1,547 | 7,185 | 381,540 | 498,504 | 4,036 | 2,023 | 500,517 | ||||||||||||||||||||||||
Investment Securities: | ||||||||||||||||||||||||||||||||
Tax-exempt securities | 204,441 | 325 | 2,795 | 201,971 | 219,322 | 2,062 | 1,030 | 220,354 | ||||||||||||||||||||||||
Other bonds | 588 | — | — | 588 | 585 | — | — | 585 | ||||||||||||||||||||||||
U.S. Treasury notes | 998 | 2 | — | 1,000 | — | — | — | — | ||||||||||||||||||||||||
Equity securities | 82,296 | 9,265 | — | 91,561 | 23,141 | 4,404 | — | 27,545 | ||||||||||||||||||||||||
Total investment securities | 288,323 | 9,592 | 2,795 | 295,120 | 243,048 | 6,466 | 1,030 | 248,484 | ||||||||||||||||||||||||
Total | $ | 675,501 | $ | 11,139 | $ | 9,980 | $ | 676,660 | $ | 741,552 | $ | 10,502 | $ | 3,053 | $ | 749,001 | ||||||||||||||||
Investment Securities and Tax Certificates | ||||||||||||||||||||||||||||||||
December 31, 2005 | December 31, 2004 | |||||||||||||||||||||||||||||||
Gross | Gross | Estimated | Gross | Gross | Estimated | |||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Cost | Appreciation | Depreciation | Value | Cost | Appreciation | Depreciation | Value | |||||||||||||||||||||||||
Tax certificates (1) — | ||||||||||||||||||||||||||||||||
Net of allowance of $3,271 and $3,297, respectively | $ | 163,726 | $ | — | $ | — | $ | 163,726 | $ | 166,731 | $ | — | $ | — | $ | 166,731 | ||||||||||||||||
Tax-exempt securities | 193,918 | 313 | 1,428 | 192,803 | 133,562 | 302 | 777 | 133,087 | ||||||||||||||||||||||||
Investment securities (2) | 27,324 | 793 | — | 28,117 | 17,253 | 345 | — | 17,598 | ||||||||||||||||||||||||
$ | 384,968 | $ | 1,106 | $ | 1,428 | $ | 384,646 | $ | 317,546 | $ | 647 | $ | 777 | $ | 317,416 | |||||||||||||||||
(1) | Management considers estimated fair value equivalent to book value for tax certificates since these securities have no readily traded market and are deemed to approximate fair value. | |
(2) | Investment securities consist of equity instruments purchased through private placements and are accounted for at historical cost adjusted for other-than-temporary declines in value. |
F-29
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Notes to Consolidated Financial Statements
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 156,852 | $ | (2,110 | ) | $ | 101,168 | $ | (2,639 | ) | $ | 258,020 | $ | (4,749 | ) | |||||||||
Real estate mortgage investment Conduits | 12,210 | (346 | ) | 35,151 | (2,090 | ) | 47,361 | (2,436 | ) | |||||||||||||||
Tax exempt securities | 107,089 | (1,209 | ) | 49,657 | (1,586 | ) | 156,746 | (2,795 | ) | |||||||||||||||
Total securities available for sale | 276,151 | (3,665 | ) | 185,976 | (6,315 | ) | 462,127 | (9,980 | ) | |||||||||||||||
Investment securities | ||||||||||||||||||||||||
Tax exempt securities | 116,393 | (1,132 | ) | 11,982 | (296 | ) | 128,375 | (1,428 | ) | |||||||||||||||
Total | $ | 392,544 | $ | (4,797 | ) | $ | 197,958 | $ | (6,611 | ) | $ | 590,502 | $ | (11,408 | ) | |||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 91,091 | $ | (1,256 | ) | $ | 52,253 | $ | (331 | ) | $ | 143,344 | $ | (1,587 | ) | |||||||||
Real estate mortgage investment conduits | 71,705 | (436 | ) | — | — | 71,705 | (436 | ) | ||||||||||||||||
Tax exempt securities | 71,523 | (1,030 | ) | — | — | 71,523 | (1,030 | ) | ||||||||||||||||
Total securities available for sale | 234,319 | (2,722 | ) | 52,253 | (331 | ) | 286,572 | (3,053 | ) | |||||||||||||||
Investment securities | ||||||||||||||||||||||||
Tax exempt securities | 78,585 | (777 | ) | — | — | 78,585 | (777 | ) | ||||||||||||||||
Total | $ | 312,904 | $ | (3,499 | ) | $ | 52,253 | $ | (331 | ) | $ | 365,157 | $ | (3,830 | ) | |||||||||
F-30
Table of Contents
Notes to Consolidated Financial Statements
Debt Securities | Tax Certificates and | |||||||||||||||
Available for Sale | Investment Securities | |||||||||||||||
Estimated | Estimated | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
December 31, 2005 (1) (2) (3) | Cost | Value | Cost | Value | ||||||||||||
Due within one year | $ | 5,429 | $ | 5,410 | $ | 163,726 | $ | 163,726 | ||||||||
Due after one year, but within five years | 90,319 | 89,311 | — | — | ||||||||||||
Due after five years, but within ten years | 122,187 | 120,617 | 975 | 967 | ||||||||||||
Due after ten years | 375,270 | 369,761 | 192,943 | 191,836 | ||||||||||||
Total | $ | 593,205 | $ | 585,099 | $ | 357,644 | $ | 356,529 | ||||||||
(1) | Scheduled maturities in the above table may vary significantly from actual maturities due to prepayments. | |
(2) | 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 (1 year or less). | |
(3) | Amounts include $356 million of callable tax exempt securities with call dates ranging from 2006 to 2015. |
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Balance, beginning of period | $ | 3,297 | $ | 2,870 | $ | 1,873 | ||||||
Charge-offs | (979 | ) | (491 | ) | (869 | ) | ||||||
Recoveries | 603 | 918 | 666 | |||||||||
Net (charge-offs) recoveries | (376 | ) | 427 | (203 | ) | |||||||
Provision charged to operations | 350 | — | 1,200 | |||||||||
Balance, end of period | $ | 3,271 | $ | 3,297 | $ | 2,870 | ||||||
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Gross gains on securities activities | $ | 917 | $ | 7,162 | $ | 900 | ||||||
Gross losses on securities activities | (18 | ) | — | (1,961 | ) | |||||||
Unrealized gain on future contract | 12 | 36 | — | |||||||||
Unrealized loss on future contract | (6 | ) | — | (49 | ) | |||||||
Net gains (losses) on the sales of securities available for sale (1) | $ | 905 | $ | 7,198 | $ | (1,110 | ) | |||||
(1) | Net gains (losses) on sales of securities available for sale is reported in other income in the Company’s Financial Services and BFC Activities of approximately $847,000 and $58,000, respectively. |
F-31
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Notes to Consolidated Financial Statements
December 31, | ||||||||
2005 | 2004 | |||||||
Debt obligations: | ||||||||
States and municipal obligations | $ | 76,568 | $ | 10,824 | ||||
Corporate debt | 3,410 | 10,093 | ||||||
Obligations of U.S. Government agencies | 45,827 | 57,659 | ||||||
Equity securities | 23,645 | 18,042 | ||||||
Mutual funds and other | 28,359 | 27,898 | ||||||
Certificates of deposit | 2,483 | 927 | ||||||
Total | $ | 180,292 | $ | 125,443 | ||||
December 31, | ||||||||
2005 | 2004 | |||||||
Corporate equity | $ | 3,780 | $ | 3,498 | ||||
Corporate bonds | 1,332 | 9,958 | ||||||
State and municipal obligations | 41 | 269 | ||||||
Obligations of U.S. Government agencies | 29,653 | 25,384 | ||||||
Certificates of deposits | 371 | 353 | ||||||
$ | 35,177 | $ | 39,462 | |||||
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Notes to Consolidated Financial Statements
For the Years Ended December 31, | |||||||||||
2005 | 2004 | 2003 | |||||||||
Ending Balance | $ | — | $ | — | $ | — | |||||
Maximum outstanding at any month end within period | — | — | 160,000 | ||||||||
Average amount invested during period | — | — | 31,589 | ||||||||
Average yield during period | — | % | — | 0.60 |
For the Years Ended December 31, | ||||||||||
2005 | 2004 | 2003 | ||||||||
Ending Balance | $ | 1,057 | $ | 5,100 | $ | — | ||||
Maximum outstanding at any month end within period | 8,648 | 54,530 | 83,000 | |||||||
Average amount invested during period | 4,275 | 6,282 | $ | 16,499 | ||||||
Average yield during period | 1.87 | % | 0.75 | % | 1.01 | % |
December 31, | ||||||||
2005 | 2004 | |||||||
Treasury tax and loan | $ | 51,911 | $ | 1,784 | ||||
Repurchase agreements | 118,527 | 312,171 | ||||||
Public deposits | 37,923 | 53,838 | ||||||
$ | 208,361 | $ | 367,793 | |||||
F-33
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Notes to Consolidated Financial Statements
December 31, | ||||||||
2005 | 2004 | |||||||
Real estate loans: | ||||||||
Residential | $ | 2,043,055 | $ | 2,065,658 | ||||
Construction and development | 1,339,576 | 1,454,048 | ||||||
Commercial | 1,066,598 | 1,082,294 | ||||||
Small business | 151,924 | 123,740 | ||||||
Other loans: | ||||||||
Home equity | 513,813 | 457,058 | ||||||
Commercial business | 89,752 | 91,505 | ||||||
Small business — non-mortgage | 83,429 | 66,679 | ||||||
Consumer loans | 21,469 | 14,540 | ||||||
Deposit overdrafts | 5,694 | 3,894 | ||||||
Residential loans held for sale | 2,538 | 4,646 | ||||||
Other loans | 2,071 | 3,364 | ||||||
Discontinued loan products (1) | 1,207 | 8,285 | ||||||
Total gross loans | 5,321,126 | 5,375,711 | ||||||
Adjustments: | ||||||||
Undisbursed portion of loans in process | (649,296 | ) | (767,804 | ) | ||||
Premiums related to purchased loans | 5,566 | 6,609 | ||||||
Deferred fees | (3,231 | ) | (5,812 | ) | ||||
Deferred profit on commercial real estate loans | (231 | ) | (549 | ) | ||||
Allowance for loan and lease losses | (41,830 | ) | (47,082 | ) | ||||
Loans receivable — net | $ | 4,632,104 | $ | 4,561,073 | ||||
(1) | Discontinued loan products consist of lease financings and indirect consumer loans. These loan products were discontinued during prior periods. |
F-34
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Notes to Consolidated Financial Statements
Florida | 57 | % | ||
California | 11 | % | ||
Northeast | 8 | % | ||
Other | 24 | % | ||
100 | % | |||
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Balance, beginning of period | $ | 47,082 | $ | 46,667 | $ | 49,094 | ||||||
Loans charged-off | (2,694 | ) | (4,076 | ) | (11,723 | ) | ||||||
Recoveries of loans previously charged-off | 4,057 | 9,600 | 10,577 | |||||||||
Net recoveries (charge-offs) | 1,363 | 5,524 | (1,146 | ) | ||||||||
Allowance for loan losses, acquired | — | — | (734 | ) | ||||||||
Net provision credited to operations | (6,615 | ) | (5,109 | ) | (547 | ) | ||||||
Balance, end of period | $ | 41,830 | $ | 47,082 | $ | 46,667 | ||||||
December 31, 2005 | December 31, 2004 | |||||||||||||||
Gross | Gross | |||||||||||||||
Recorded | Specific | Recorded | Specific | |||||||||||||
Investment | Allowances | Investment | Allowances | |||||||||||||
Impaired loans with specific valuation allowances | $ | 386 | $ | 193 | $ | 247 | $ | 123 | ||||||||
Impaired loans without specific valuation allowances | 6,878 | — | 8,123 | — | ||||||||||||
Total | $ | 7,264 | $ | 193 | $ | 8,370 | $ | 123 | ||||||||
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Contracted interest income | $ | 343 | $ | 464 | $ | 666 | ||||||
Interest income recognized | (192 | ) | (192 | ) | (396 | ) | ||||||
Foregone interest income | $ | 151 | $ | 272 | $ | 270 | ||||||
F-35
Table of Contents
Notes to Consolidated Financial Statements
December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Non-accrual — tax certificates | $ | 388 | $ | 381 | $ | 894 | ||||||
Non-accrual — loans | ||||||||||||
Residential | 5,981 | 5,538 | 9,777 | |||||||||
Commercial real estate and business | 340 | 340 | 52 | |||||||||
Small business | 9 | 88 | 155 | |||||||||
Lease financing | — | 727 | 25 | |||||||||
Consumer | 471 | 1,210 | 794 | |||||||||
Total non-accrual loans | 6,801 | 7,903 | 10,803 | |||||||||
Real estate owned | 967 | 692 | 2,422 | |||||||||
Total non-performing assets | $ | 8,156 | $ | 8,976 | $ | 14,119 | ||||||
December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Loans contractually past due 90 days or more and still accruing | $ | — | $ | — | $ | 135 | ||||||
Performing impaired loans, net of specific allowances | 193 | 320 | 180 | |||||||||
Restructured loans | 77 | 24 | 1,387 | |||||||||
Total potential problem loans | $ | 270 | $ | 344 | $ | 1,702 | ||||||
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Real estate acquired in settlement of loans and tax certificates: | ||||||||||||
Operating expenses, net | $ | (75 | ) | $ | (137 | ) | $ | (1,122 | ) | |||
Provisions for losses on REO | — | (5 | ) | (812 | ) | |||||||
Net gains on sales | 1,840 | 694 | 1,984 | |||||||||
Total income from real estate acquired | $ | 1,765 | $ | 552 | $ | 50 | ||||||
F-36
Table of Contents
Notes to Consolidated Financial Statements
December 31, | ||||||||
2005 | 2004 | |||||||
Loans receivable | $ | 26,113 | $ | 22,141 | ||||
Investment securities and tax certificates | 10,929 | 9,527 | ||||||
Securities available for sale | 4,454 | 4,327 | ||||||
Accrued interest receivable | $ | 41,496 | $ | 35,995 | ||||
December 31, | ||||||||
2005 | 2004 | |||||||
Land | $ | 35,364 | $ | 28,958 | ||||
Buildings and improvements | 120,059 | 105,174 | ||||||
Furniture and equipment | 105,716 | 79,455 | ||||||
Water irrigation facilities | 7,150 | 5,844 | ||||||
Total | 268,289 | 219,431 | ||||||
Less accumulated depreciation | 69,856 | 58,434 | ||||||
Properties and equipment — net | $ | 198,433 | $ | 160,997 | ||||
December 31, | ||||||||
2005 | 2004 | |||||||
Land and land development costs | $ | 467,747 | $ | 302,383 | ||||
Construction costs | 120,830 | 112,292 | ||||||
Other capitalized costs | 43,860 | 24,020 | ||||||
Other real estate | 160 | 5,936 | ||||||
Total | $ | 632,597 | $ | 444,631 | ||||
F-37
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Notes to Consolidated Financial Statements
December 31, | ||||||||
2005 | 2004 | |||||||
Investment in Bluegreen Corporation | $ | 95,828 | $ | 80,572 | ||||
Investments in real estate joint ventures | 195 | 608 | ||||||
Investment in rental property joint venture | 4,554 | — | ||||||
BankAtlantic Bancorp investment in statutory business trusts | 7,910 | 7,910 | ||||||
Levitt investment in statutory business trusts | 1,637 | — | ||||||
$ | 110,124 | $ | 89,090 | |||||
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Equity in Bluegreen earnings | $ | 12,714 | $ | 13,068 | $ | 9,085 | ||||||
Equity in joint ventures (loss) earnings | 69 | 6,050 | 616 | |||||||||
Earnings from statutory trusts | 621 | 485 | 425 | |||||||||
$ | 13,404 | $ | 19,603 | $ | 10,126 | |||||||
F-38
Table of Contents
Notes to Consolidated Financial Statements
F-39
Table of Contents
Notes to Consolidated Financial Statements
(In thousands)
December 31, | ||||||||
2005 | 2004 | |||||||
Total assets | $ | 694,243 | 658,411 | |||||
Total liabilities | 371,069 | 391,336 | ||||||
Minority interest | 9,508 | 6,009 | ||||||
Total shareholders’ equity | 313,666 | 261,066 | ||||||
Total liabilities and shareholders’ equity | $ | 694,243 | 658,411 | |||||
(In thousands)
Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2005 | 2004 | 2003 | ||||||||||
Revenues | $ | 684,156 | 630,728 | 445,093 | ||||||||
Cost and expenses | 603,624 | 557,462 | 409,508 | |||||||||
Provision for income taxes | 29,142 | 26,642 | 12,418 | |||||||||
Minority interest | 4,839 | 4,065 | 3,330 | |||||||||
Net income | $ | 46,551 | 42,559 | 19,837 | ||||||||
December 31, | ||||||||
2005 | 2004 | |||||||
Statement of Financial Condition | ||||||||
Junior subordinated debentures | $ | 263,266 | $ | 263,266 | ||||
Other assets | 820 | 694 | ||||||
Total Assets | $ | 264,086 | $ | 263,960 | ||||
Trust preferred securities | $ | 255,375 | $ | 255,375 | ||||
Other liabilities | 801 | 675 | ||||||
Total Liabilities | 256,176 | 256,050 | ||||||
Common securities | 7,910 | 7,910 | ||||||
Total Liabilities and Equity | $ | 264,086 | $ | 263,960 | ||||
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Statement of Operations | ||||||||||||
Interest income from subordinated debentures | $ | 18,538 | $ | 16,161 | $ | 14,534 | ||||||
Interest expense | (17,982 | ) | (15,676 | ) | (14,109 | ) | ||||||
Net income | $ | 556 | $ | 485 | $ | 425 | ||||||
F-40
Table of Contents
Notes to Consolidated Financial Statements
December 31, | ||||||||||||||||
2005 | 2004 | |||||||||||||||
Amount | Percent | Amount | Percent | |||||||||||||
Interest free checking | $ | 1,019,949 | 27.18 | % | $ | 890,398 | 25.75 | % | ||||||||
Insured money fund savings | ||||||||||||||||
1.76% at December 31, 2005, | ||||||||||||||||
1.05% at December 31, 2004, | 846,441 | 22.56 | 875,422 | 25.32 | ||||||||||||
NOW accounts | ||||||||||||||||
0.50% at December 31, 2005, | ||||||||||||||||
0.30% at December 31, 2004, | 755,708 | 20.14 | 658,137 | 19.04 | ||||||||||||
Savings accounts | ||||||||||||||||
0.46% at December 31, 2005, | ||||||||||||||||
0.28% at December 31, 2004, | 313,889 | 8.36 | 270,001 | 7.81 | ||||||||||||
Total non-certificate accounts | 2,935,987 | 78.24 | 2,693,958 | 77.92 | ||||||||||||
Certificate accounts: | ||||||||||||||||
Less than 2.00% | 20,546 | 0.55 | 302,319 | 8.74 | ||||||||||||
2.01% to 3.00% | 181,589 | 4.84 | 327,958 | 9.49 | ||||||||||||
3.01% to 4.00% | 475,750 | 12.67 | 74,439 | 2.15 | ||||||||||||
4.01% to 5.00% | 130,288 | 3.47 | 21,357 | 0.62 | ||||||||||||
5.01% to 6.00% | 4,767 | 0.13 | 34,988 | 1.01 | ||||||||||||
Total certificate accounts | 812,940 | 21.66 | 761,061 | 22.01 | ||||||||||||
Total deposit accounts | 3,748,927 | 99.90 | 3,455,019 | 99.93 | ||||||||||||
Premium on brokered deposits | (35 | ) | (0.00 | ) | (308 | ) | (0.01 | ) | ||||||||
Fair value adjustment related to acquisitions | — | — | 16 | 0.00 | ||||||||||||
Interest earned not credited to deposit accounts | 3,784 | 0.10 | 2,475 | 0.08 | ||||||||||||
Total | $ | 3,752,676 | 100.00 | % | $ | 3,457,202 | 100.00 | % | ||||||||
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Money fund savings and NOW accounts | $ | 16,592 | $ | 10,860 | $ | 11,142 | ||||||
Savings accounts | 909 | 652 | 856 | |||||||||
Certificate accounts — below $100,000 | 12,676 | 8,126 | 10,914 | |||||||||
Certificate accounts, $100,000 and above | 10,225 | 8,873 | 13,457 | |||||||||
Less early withdrawal penalty | (318 | ) | (156 | ) | (180 | ) | ||||||
Total | $ | 40,084 | $ | 28,355 | $ | 36,189 | ||||||
F-41
Table of Contents
Notes to Consolidated Financial Statements
For the Years Ending December 31, | ||||||||||||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | Thereafter | |||||||||||||||||||
0.00% to 2.00% | $ | 17,253 | $ | 2,242 | $ | 422 | $ | 384 | $ | 96 | $ | 149 | ||||||||||||
2.01% to 3.00% | 162,503 | 14,780 | 3,188 | 997 | 122 | — | ||||||||||||||||||
3.01% to 4.00% | 395,628 | 45,924 | 22,315 | 6,114 | 5,348 | 420 | ||||||||||||||||||
4.01% to 5.00% | 84,378 | 28,735 | 8,293 | 6,977 | 1,905 | — | ||||||||||||||||||
5.01% and greater | 2,773 | 1,673 | 314 | — | — | 7 | ||||||||||||||||||
Total | $ | 662,535 | $ | 93,354 | $ | 34,532 | $ | 14,472 | $ | 7,471 | $ | 576 | ||||||||||||
December 31, | ||||
2005 | ||||
3 months or less | $ | 142,901 | ||
4 to 6 months | 89,290 | |||
7 to 12 months | 73,346 | |||
More than 12 months | 57,430 | |||
Total | $ | 362,967 | ||
2005 | 2004 | |||||||
Brokered deposits | $ | 77,898 | $ | 140,116 | ||||
Public deposits | 63,767 | 114,052 | ||||||
Total institutional deposits | $ | 141,665 | $ | 254,168 | ||||
F-42
Table of Contents
Notes to Consolidated Financial Statements
Payable During Year | Year | December 31 | ||||||||||
Ending December 31, | Callable | Interest Rate | 2005 | 2004 | ||||||||
2005 | 1.86% | $ | — | $ | 7,500 | |||||||
2006 | 1.89% | 2,083 | 10,417 | |||||||||
2008 | 5.14% to 5.67% | 409,000 | 409,000 | |||||||||
2010 | 5.84% to 6.34% | 32,000 | 32,000 | |||||||||
2011 | 4.50% to 5.05% | 80,000 | 50,000 | |||||||||
Total fixed rate advances | 523,083 | 508,917 | ||||||||||
European callable fixed rate advances — 2011 | 2005 | 5.05% | — | 30,000 | ||||||||
Bermuda callable fixed rate advances — 2009 | 2006 | 4.46% | 10,000 | 10,000 | ||||||||
2005 | 2.13% to 2.57% | — | 870,000 | |||||||||
2006 | 1.18% to 2.39% | — | 125,000 | |||||||||
2006 | 4.11% to 4.51% | 650,000 | — | |||||||||
Total adjustable rate advances | 650,000 | 995,000 | ||||||||||
2009 | 2006 | 4.14% | 25,000 | — | ||||||||
2010 | 2006 | 3.71% | 25,000 | — | ||||||||
2012 | 2006 | 3.71% to 4.14% | 50,000 | — | ||||||||
Flipper callable adjustable rate advances | 100,000 | — | ||||||||||
Purchase accounting fair value adjustments | 449 | 580 | ||||||||||
Total FHLB advances | $ | 1,283,532 | $ | 1,544,497 | ||||||||
Average cost during period | 4.04 | % | 3.93 | % | ||||||||
Average cost end of period | 4.76 | % | 3.41 | % | ||||||||
F-43
Table of Contents
Notes to Consolidated Financial Statements
2005 | 2004 | 2003 | ||||||||||
Ending balance | $ | 139,475 | $ | 105,000 | $ | — | ||||||
Maximum outstanding at any month-end within period | $ | 181,065 | $ | 105,000 | $ | 180,000 | ||||||
Average amount outstanding during period | $ | 124,605 | $ | 47,661 | $ | 60,179 | ||||||
Average cost during period | 3.42 | % | 2.47 | % | 1.29 | % |
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Maximum borrowing at any month-end within the period | $ | 287,088 | $ | 374,824 | $ | 365,042 | ||||||
Average borrowing during the period | $ | 185,111 | $ | 189,398 | $ | 193,068 | ||||||
Average interest cost during the period | 2.88 | % | 1.26 | % | 1.11 | % | ||||||
Average interest cost at end of the period | 4.10 | % | 2.16 | % | 0.73 | % |
F-44
Table of Contents
Notes to Consolidated Financial Statements
Weighted | ||||||||||||||||
Estimated | Average | |||||||||||||||
Amortized | Fair | Repurchase | Interest | |||||||||||||
Cost | Value | Balance | Rate | |||||||||||||
December 31, 2005 (1) | ||||||||||||||||
Mortgage-backed securities | $ | 84,023 | $ | 83,376 | $ | 77,229 | 4.10 | % | ||||||||
REMIC | 37,241 | 35,151 | 32,559 | 4.10 | ||||||||||||
Total | $ | 121,264 | $ | 118,527 | $ | 109,788 | 4.10 | % | ||||||||
December 31, 2004 (1) | ||||||||||||||||
Mortgage-backed securities | $ | 213,824 | $ | 215,904 | $ | 175,316 | 2.09 | % | ||||||||
REMIC | 96,644 | 96,267 | 81,685 | 2.30 | ||||||||||||
Total | $ | 310,468 | $ | 312,171 | $ | 257,002 | 2.16 | % | ||||||||
(1) | At December 31, 2005 and 2004, all securities were classified as available for sale and were recorded at fair value in the consolidated statements of financial condition. |
F-45
Table of Contents
Notes to Consolidated Financial Statements
Issue | December 31, | Interest | Maturity | |||||||||||
Date | 2005 | 2004 | Rate | Date | ||||||||||
BFC Borrowings | ||||||||||||||
Revolving Line of Credit | Various | — | 10,483 | LIBOR +2.80 | April 30, 2006 | |||||||||
Mortgage payables | Various | 69 | 8,776 | 6.00% | June 2009 | |||||||||
Total BFC borrowings | 69 | 19,259 | ||||||||||||
BankAtlantic Bancorp Borrowings | ||||||||||||||
Bank line of credit | 9/19/2005 | — | — | Prime -.50 | September 15, 2006 | |||||||||
Bank line of credit | 08/24/2000 | — | 100 | Prime - .50 % | March 1, 2007 | |||||||||
Total BankAtlantic Bancorp borrowings | $ | — | $ | 100 | ||||||||||
BankAtlantic Borrowings | ||||||||||||||
Subordinated debentures (1) | 10/29/2002 | $ | 22,000 | $ | 22,000 | LIBOR + 3.45% | November 7, 2012 | |||||||
Development notes | 3/22/2002 | 7,651 | 1,036 | Prime + 1.00% | August 28, 2006 | |||||||||
Development notes | 3/22/2002 | 468 | 4,647 | Prime + .75% | May 1, 2006 | |||||||||
Mortgage-Backed Bond | 3/22/2002 | 8,973 | 9,958 | (2) | September 30, 2013 | |||||||||
BankAtlantic Borrowings | $ | 39,092 | $ | 37,641 | ||||||||||
BankAtlantic secured borrowings | Various | 138,270 | — | Floating | Various | |||||||||
Total BankAtlantic borrowings | 177,362 | 37,641 | ||||||||||||
Levitt Borrowings | ||||||||||||||
Homebuilding- mortgage notes payable | Various | $ | 114,687 | $ | 141,697 | From Prime - 0.50% to Prime + 0.50% | Range from February 2006 to September 2009 | |||||||
Homebuilding mortgage notes payable due to BankAtlantic | Various | 223 | 8,621 | Prime | March 2006 | |||||||||
Borrowing base facilities | Various | 143,100 | — | From LIBOR + 2.00% to LIBOR + 2.40% | Range from August 2008 to December 2008 | |||||||||
Land acquisition mortgage notes payable | Various | 48,936 | 48,000 | From Fixed 6.88% to LIBOR + 2.80% | Range from June 2011 to October 2019 | |||||||||
Land construction mortgage notes payable | Various | 13,012 | 4,475 | From LIBOR + 1.75% to LIBOR + 2.00% | Range from March 2006 to June 2008 | |||||||||
Land acquisition and construction mortgage notes payable | Various | 3,875 | 7,447 | From LIBOR + 2.50% to LIBOR + 2.75% | Range from July 2006 to September 2007 | |||||||||
Other borrowings | Various | 7 | 254 | Fixed 5.99% | April 2007 | |||||||||
Line of credit | Various | 14,500 | — | Prime | September 2006 | |||||||||
Promissory note payable | — | 16,500 | LIBOR + 1.50% | April 2005 | ||||||||||
Other mortgage notes payable | 12,374 | — | Fixed 5.47% | April 2015 | ||||||||||
Subordinated investment notes | 3,132 | 3,232 | Fixed from 6.50% to 8.75% | Range from January 2006 to February 2008 | ||||||||||
Other operations borrowings due to BankAtlantic Bancorp | — | 38,000 | Prime + 0.25% escalation every six months | December 2008 | ||||||||||
Total Levitt borrowings | $ | 353,846 | $ | 268,226 | ||||||||||
Inter-Company borrowings eliminated (3) | (223 | ) | (46,621 | ) | ||||||||||
Total | $ | 531,054 | $ | 278,605 | ||||||||||
(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) | Loans between Levitt and BankAtlantic amounting to $223,000 and $46.6 million at December 31, 2005 and 2004, respectively were eliminated in consolidation. |
F-46
Table of Contents
Notes to Consolidated Financial Statements
Beginning | ||||||||||||||
Optional | ||||||||||||||
Issue | Outstanding | Interest | Maturity | Redemption | ||||||||||
Junior Subordinated Debentures | Date | Amount | Rate | Date | Date | |||||||||
BankAtlantic Bancorp | ||||||||||||||
Subordinated Debentures Trust II | 03/05/2002 | $ | 57,088 | 8.50 | % | 03/31/2032 | 03/31/2007 | |||||||
Subordinated Debentures Trust III | 06/26/2002 | 25,774 | LIBOR + 3.45% (1) | 06/26/2032 | 06/26/2007 | |||||||||
Subordinated Debentures Trust IV | 09/26/2002 | 25,774 | LIBOR + 3.40% (1) | 09/26/2032 | 09/26/2007 | |||||||||
Subordinated Debentures Trust V | 09/27/2002 | 10,310 | LIBOR + 3.40% (1) | 09/30/2032 | 09/27/2007 | |||||||||
Subordinated Debentures Trust VI | 12/10/2002 | 15,450 | LIBOR + 3.35% (1) | 12/10/2032 | 12/10/2007 | |||||||||
Subordinated Debentures Trust VII | 12/19/2002 | 25,774 | LIBOR + 3.25% (1) | 12/19/2032 | 12/19/2007 | |||||||||
Subordinated Debentures Trust VIII | 12/19/2002 | 15,464 | LIBOR + 3.35% (1) | 01/07/2033 | 12/19/2007 | |||||||||
Subordinated Debentures Trust IX | 12/19/2002 | 10,310 | LIBOR + 3.35% (1) | 01/07/2033 | 12/19/2007 | |||||||||
Subordinated Debentures Trust X | 03/26/2003 | 51,548 | 6.40% | (2) | 03/26/2033 | 03/26/2008 | ||||||||
Subordinated Debentures Trust XI | 04/10/2003 | 10,310 | 6.45% | (2) | 04/24/2033 | 04/24/2008 | ||||||||
Subordinated Debentures Trust XII | 03/27/2003 | 15,464 | 6.65% | (2) | 04/07/2033 | 04/07/2008 | ||||||||
Total BankAtlantic Bancorp | 263,266 | |||||||||||||
Levitt | ||||||||||||||
Levitt Capital Trust I (“LCT I”) | 03/15/2005 | 23,196 | 8.11% | (2) | 03/30/2035 | 03/15/2010 | ||||||||
Levitt Capital Trust II (“LCT II”) | 05/04/2005 | 30,928 | 8.09% | (2) | 06/30/2035 | 05/04/2010 | ||||||||
Total Levitt | 54,124 | |||||||||||||
Total Junior Subordinated Debentures | $ | 317,390 | ||||||||||||
(1) | LIBOR interest rates are indexed to 3-month LIBOR and adjust quarterly. | |
(2) | Adjusts to floating LIBOR rate five years from the issue date. |
Amount | ||||
Year ended December 31, | ||||
2006 | $ | 125,798 | ||
2007 | 81,083 | |||
2008 | 196,704 | |||
2009 | 39,366 | |||
2010 | 9,451 | |||
Thereafter | 396,042 | |||
$ | 848,444 | |||
F-47
Table of Contents
Notes to Consolidated Financial Statements
F-48
Table of Contents
Notes to Consolidated Financial Statements
F-49
Table of Contents
Notes to Consolidated Financial Statements
F-50
Table of Contents
Notes to Consolidated Financial Statements
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Continuing operations | $ | 70,256 | $ | 84,103 | $ | 44,226 | ||||||
Discontinued operations | 1,707 | (106 | ) | (577 | ) | |||||||
Total provision for income taxes | $ | 71,963 | $ | 83,997 | $ | 43,649 | ||||||
Continuing operations: | ||||||||||||
Current: | ||||||||||||
Federal | $ | 57,108 | $ | 56,616 | $ | 27,200 | ||||||
State | 9,637 | 9,487 | 4,287 | |||||||||
66,745 | 66,103 | 31,487 | ||||||||||
Deferred: | ||||||||||||
Federal | 3,293 | 16,647 | 12,739 | |||||||||
State | 218 | 1,353 | (0 | ) | ||||||||
3,511 | 18,000 | 12,739 | ||||||||||
Provision for income taxes | $ | 70,256 | $ | 84,103 | $ | 44,226 | ||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
2005 (1) | 2004 (1) | 2003 (1) | ||||||||||||||||||||||
Income tax provision at expected federal income tax rate of 35% | $ | 59,974 | 35.00 | % | $ | 70,874 | 35.00 | % | $ | 35,453 | 35.00 | % | ||||||||||||
Increase (decrease) resulting from: | ||||||||||||||||||||||||
Taxes related to subsidiaries not consolidated for income tax purposes | 7,524 | 4.39 | % | 8,423 | 4.16 | % | 5,818 | 5.74 | % | |||||||||||||||
Tax-exempt interest income | (5,646 | ) | (3.29 | %) | (2,298 | ) | (1.13 | %) | (267 | ) | (0.26 | %) | ||||||||||||
Provision (benefit) for state taxes, net of federal effect | 6,592 | 3.85 | % | 7,088 | 3.50 | % | 3,997 | 3.95 | % | |||||||||||||||
Non-deductible fines and penalties | 3,500 | 2.04 | % | — | ||||||||||||||||||||
Change in State tax valuation allowance | 777 | (0.45 | %) | 94 | (0.05 | %) | (1,168 | ) | (1.15 | %) | ||||||||||||||
Change in valuation allowance for deferred tax assets | — | — | — | — | (418 | ) | (0.41 | %) | ||||||||||||||||
Levitt spin-off nondeductible | — | — | 90 | 0.04 | % | 1,275 | 1.26 | % | ||||||||||||||||
Low income housing tax credits | (549 | ) | (0.32 | %) | (468 | ) | (0.23 | %) | (555 | ) | (0.55 | %) | ||||||||||||
Other – net | (1,916 | ) | (1.12 | %) | 300 | (0.15 | %) | 91 | 0.09 | % | ||||||||||||||
Provision for income taxes | $ | 70,256 | 41.00 | % | $ | 84,103 | 41.53 | % | $ | 44,226 | 43.66 | % | ||||||||||||
(1) | Expected tax is computed based upon income (loss) from continuing operations before noncontrolling interest. |
F-51
Table of Contents
Notes to Consolidated Financial Statements
Years Ended December 31, | ||||||||||||||
2005 | 2004 | 2003 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Allowance for loans, REO, tax certificate losses and other reserves, for financial statement purposes | $ | 20,234 | $ | 21,166 | $ | 27,833 | ||||||||
Federal and State net operating loss carryforward | 25,612 | 22,735 | 9,277 | |||||||||||
Compensation expensed for financial statement and deferred for tax purposes | 10,225 | 4,746 | 3,754 | |||||||||||
Real estate held for development and sale capitalized costs for tax purposes in excess of amounts capitalized for financial statement purposes | 5,762 | 5,948 | 3,880 | |||||||||||
Accumulated other comprehensive income | 4,057 | 606 | — | |||||||||||
Purchase accounting adjustments from real estate acquisitions | 399 | 1,152 | 3,011 | |||||||||||
Income recognized for tax purposes and deferred for financial statement purposes | 4,426 | 1,692 | — | |||||||||||
Other | 3,240 | 3,982 | 4,897 | |||||||||||
Total gross deferred tax assets | 73,955 | 62,027 | 52,651 | |||||||||||
Less valuation allowance | 3,341 | 2,564 | 2,470 | |||||||||||
Total deferred tax assets | 70,614 | 59,463 | 50,181 | |||||||||||
Deferred tax liabilities: | ||||||||||||||
Subsidiaries not consolidated for income tax purposes | 55,302 | 48,273 | 36,006 | |||||||||||
Investment in Bluegreen | 15,167 | 9,282 | 5,533 | |||||||||||
Deferred loan income | 1,452 | 1,190 | 885 | |||||||||||
Change in investment of unconsolidated real estate affiliates | — | — | — | |||||||||||
Purchase accounting adjustments for bank acquisitions | 2,219 | 1,920 | 2,229 | |||||||||||
Accumulated other comprehensive income | 591 | 363 | 3,887 | |||||||||||
Prepaid pension expense | 2,454 | 2,517 | 2,607 | |||||||||||
Depreciation for tax greater than book | 665 | 1,146 | — | |||||||||||
Property and equipment | 1,397 | 1,132 | — | |||||||||||
Securities owned recorded at fair value for financial statement and historical cost for tax purposes | 931 | 1,216 | 1,327 | |||||||||||
Other | 1,129 | 879 | 602 | |||||||||||
Total gross deferred tax liabilities | 81,306 | 67,918 | 53,076 | |||||||||||
Net deferred tax asset (liability) | (10,692 | ) | (8,455 | ) | (2,895 | ) | ||||||||
Plus (less) net deferred tax asset (liability) at beginning of period | 8,455 | 2,895 | (12,119 | ) | ||||||||||
Acquired net deferred tax asset, net of valuation allowance | — | 595 | — | |||||||||||
Increase (decrease) in deferred tax liability from BFC’s tax effect relating to exercise stock option | 12 | (11,016 | ) | (550 | ) | |||||||||
(Decrease) increase in deferred tax liability from subsidiaries other capital transactions | (259 | ) | 3,650 | 776 | ||||||||||
(Decrease) increase in accumulated other comprehensive income | (261 | ) | (369 | ) | 416 | |||||||||
Increase (decrease) in Levitt’s accumulated other comprehensive income | 978 | (1,291 | ) | 361 | ||||||||||
(Decrease) increase in BankAtlantic Bancorp accumulated other comprehensive income | (3,451 | ) | (3,903 | ) | 1,019 | |||||||||
(Provision) for deferred income taxes | (5,218 | ) | (17,894 | ) | (12,993 | ) | ||||||||
Provision (benefit) for deferred income taxes — discontinued operations | 1,707 | (106 | ) | (60 | ) | |||||||||
Reduction in deferred tax asset associated with GMS sale | — | — | 314 | |||||||||||
(Provision) for deferred income taxes — continuing operations | $ | (3,511 | ) | $ | (18,000 | ) | $ | (12,739 | ) | |||||
F-52
Table of Contents
Notes to Consolidated Financial Statements
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Balance, beginning of period | $ | 2,564 | $ | 2,470 | $ | 4,369 | ||||||
Utilization of acquired tax benefits | — | — | (418 | ) | ||||||||
Increase (reduction) in state deferred tax valuation allowance | 777 | 94 | (1,168 | ) | ||||||||
Other decreases and reclassifications | — | — | (313 | ) | ||||||||
Balance, end of period | $ | 3,341 | $ | 2,564 | $ | 2,470 | ||||||
Expiration | ||||||||
Year | State | Federal | ||||||
2006 | $ | 429 | $ | — | ||||
2007 | 4,235 | 4,557 | ||||||
2008 | 2,332 | 3,322 | ||||||
2011 | 1,662 | 1,831 | ||||||
2012 | 669 | 984 | ||||||
2021 | 806 | 1,422 | ||||||
2022 | 824 | 1,515 | ||||||
2023 | 2,008 | 3,792 | ||||||
2024 | 28,059 | 34,714 | ||||||
2025 | 4,794 | 5,932 | ||||||
$ | 45,818 | $ | 58,069 | |||||
F-53
Table of Contents
Notes to Consolidated Financial Statements
Outstanding | ||||||||||||||||
Options | Price per Share | |||||||||||||||
Outstanding at December 31, 2002 | 8,504,787 | $ | 0.43 | to | $ | 3.68 | ||||||||||
Issued | 554,547 | $ | 1.84 | to | $ | 1.84 | ||||||||||
Exercised | (605,222 | ) | $ | 0.43 | to | $ | 0.47 | |||||||||
Outstanding at December 31, 2003 | 8,454,112 | $ | 0.44 | to | $ | 3.68 | ||||||||||
Issued | 307,427 | $ | 7.68 | to | $ | 8.40 | ||||||||||
Exercised | (3,521,419 | ) | $ | 0.44 | to | $ | 3.68 | |||||||||
Outstanding at December 31, 2004 | 5,240,120 | $ | 1.45 | to | $ | 8.40 | ||||||||||
Issued | 231,500 | $ | 8.92 | to | $ | 8.92 | ||||||||||
Exercised | (113,153 | ) | $ | 1.45 | to | $ | 2.14 | |||||||||
Forfeited | (58,898 | ) | $ | 1.84 | to | $ | 8.40 | |||||||||
Outstanding at December 31, 2005 | 5,299,569 | |||||||||||||||
Exercisable at December 31, 2005 | 4,293,509 | |||||||||||||||
Available for grant at December 31, 2005 | 2,745,976 | |||||||||||||||
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Weighted average exercise price of options outstanding | $ | 2.92 | $ | 2.63 | $ | 1.54 | ||||||
Weighted average exercise price of options exercised | $ | 1.53 | $ | 0.51 | $ | 0.47 | ||||||
Weighted average price of options forfeited | $ | 3.74 | $ | — | $ | — |
F-54
Table of Contents
Notes to Consolidated Financial Statements
Weighted Average | ||||||||||||||||||||||||||||
Number of | Risk Free | Expected | Expected | |||||||||||||||||||||||||
Date of | Options | Grant Date | Exercise | Interest | Life | Expected | Dividend | |||||||||||||||||||||
Grant | Granted | Fair Value | Price | Rate | (years) | Volatility | Yield | |||||||||||||||||||||
2/7/2003 | 554,547 | $ | 1.31 | $ | 1.84 | 4.50 | % | 7.0 | 72.36 | % | 0 | % | ||||||||||||||||
1/5/2004 | 29,301 | $ | 4.68 | $ | 7.68 | 4.40 | % | 7.5 | 53.36 | % | 0 | % | ||||||||||||||||
7/28/2004 | 262,501 | $ | 6.02 | $ | 8.40 | 4.61 | % | 10.0 | 57.63 | % | 0 | % | ||||||||||||||||
10/4/2004 | 15,625 | $ | 4.32 | $ | 8.40 | 3.44 | % | 5.0 | 56.06 | % | 0 | % | ||||||||||||||||
7/11/2005 | 231,500 | $ | 4.71 | $ | 8.92 | 4.61 | % | 7.5 | 41.38 | % | 0 | % |
* | Both non-qualified and incentive stock options were granted. |
Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||||
Range of | Average | Average | Average | |||||||||||||||||
Exercise | Number | Remaining | Exercise | Number | Exercise | |||||||||||||||
Prices | Outstanding | Contractual Life | Price | Exercisable | Price | |||||||||||||||
$0.84 to $1.68 | 2,352,282 | 1.5 years | $ | 1.57 | 2,352,282 | $ | 1.57 | |||||||||||||
$1.69 to $2.52 | 1,003,769 | 5.3 years | $ | 1.97 | 505,386 | $ | 2.11 | |||||||||||||
$2.53 to $4.20 | 1,410,841 | 2.0 years | $ | 3.68 | 1,410,841 | $ | 3.68 | |||||||||||||
$4.21 to $8.92 | 532,677 | 9.0 years | $ | 8.59 | 25,000 | $ | 8.40 | |||||||||||||
5,299,569 | 3.1 years | $ | 2.92 | 4,293,509 | $ | 2.37 | ||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||||
Range of | Average | Average | Average | |||||||||||||||||
Exercise | Number | Remaining | Exercise | Number | Exercise | |||||||||||||||
Prices | Outstanding | Contractual Life | Price | Exercisable | Price | |||||||||||||||
$0.84 to $1.68 | 2,449,441 | 2.5 years | $ | 1.57 | 2,449,441 | $ | 1.57 | |||||||||||||
$1.69 to $2.52 | 1,030,294 | 6.3 years | $ | 1.97 | 517,867 | $ | 2.11 | |||||||||||||
$2.53 to $4.20 | 1,452,958 | 2.9 years | $ | 3.68 | 1,452,958 | $ | 3.68 | |||||||||||||
$4.21 to $8.40 | 307,427 | 9.4 years | $ | 8.33 | 25,000 | $ | 8.40 | |||||||||||||
5,240,120 | 3.8 years | $ | 2.63 | 4,445,266 | $ | 2.36 | ||||||||||||||
F-55
Table of Contents
Notes to Consolidated Financial Statements
Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||||
Range of | Average | Average | Average | |||||||||||||||||
Exercise | Number | Remaining | Exercise | Number | Exercise | |||||||||||||||
Prices | Outstanding | Contractual Life | Price | Exercisable | Price | |||||||||||||||
$0.44 to $.84 | 3,435,393 | .7 years | $ | 0.45 | 3,435,393 | $ | 0.45 | |||||||||||||
$.85 to $1.68 | 2,470,718 | 3.5 years | $ | 1.57 | 2,470,718 | $ | 1.57 | |||||||||||||
$1.69 to $2.52 | 1,052,923 | 7.2 years | $ | 1.98 | 42,120 | $ | 1.84 | |||||||||||||
$2.53 to $4.20 | 1,495,078 | 3.9 years | $ | 3.68 | 1,495,078 | $ | 3.68 | |||||||||||||
8,454,112 | 2.9 years | $ | 1.54 | 7,443,309 | $ | 1.48 | ||||||||||||||
F-56
Table of Contents
Notes to Consolidated Financial Statements
Stock Option Plans | ||||||||||||||||||||||
Maximum | Shares | Class of | Vesting | Type of | ||||||||||||||||||
Term (3) | Authorized (6) | Stock | Requirements | Options (5) | ||||||||||||||||||
1996 Stock Option Plan | 10 years | 2,246,094 | A | 5 Years | (1) | ISO, NQ | ||||||||||||||||
1998 Ryan Beck Option Plan | 10 years | 362,417 | A | (4) | ISO, NQ | |||||||||||||||||
1998 Stock Option Plan | 10 years | 920,000 | A | 5 Years | (1) | ISO, NQ | ||||||||||||||||
1999 Non-qualifying Stock Option Plan | 10 years | 862,500 | A | (2) | NQ | |||||||||||||||||
1999 Stock Option Plan | 10 years | 862,500 | A | (2) | ISO, NQ | |||||||||||||||||
2000 Non-qualifying Stock Option Plan | 10 years | 1,704,148 | A | Immediately | NQ | |||||||||||||||||
2001 Amended and Restated Stock Option Plan | 10 years | 3,918,891 | A | 5 Years | (1) | ISO, NQ | ||||||||||||||||
2005 Restricted Stock and Option Plan | 10 years | 6,000,000 | A | 5 Years | (1) | ISO, NQ |
(1) | Vesting is established by BankAtlantic Bancorp Compensation Committee in connection with each grant of options. All directors’ stock options vest immediately. | |
(2) | Vesting is established by BankAtlantic Bancorp Compensation Committee. | |
(3) | All outstanding options must be exercised no later than 10 years after their grant date. | |
(4) | Upon acquisition of Ryan Beck BankAtlantic Bancorp assumed all options outstanding under Ryan Beck’s existing stock option plans at various exercise prices based upon the exercise prices of the assumed option. No new options will be issued under the 1998 Ryan Beck option plan and the plan will terminate when the outstanding options are exercised or expire. | |
(5) | ISO — Incentive Stock Option | |
NQ — Non-qualifying Stock Option | ||
(6) | During 2001 shares underlying options available for grant under all stock options plans except the 2001 stock option plan were canceled. During 2005 restricted stock and options available for grant under the 2001 stock option plan were canceled. |
Class A | ||||
Outstanding | ||||
Options | ||||
Outstanding at December 31, 2002 | 7,449,348 | |||
Exercised | (1,301,470 | ) | ||
Forfeited | (224,781 | ) | ||
Issued | 1,015,123 | |||
Outstanding at December 31, 2003 | 6,938,220 | |||
Exercised | (1,461,678 | ) | ||
Forfeited | (77,797 | ) | ||
Issued | 776,100 | |||
Outstanding at December 31, 2004 | 6,174,845 | |||
Exercised | (923,140 | ) | ||
Forfeited | (71,023 | ) | ||
Issued | 858,571 | |||
Outstanding at December 31, 2005 | 6,039,253 | |||
Available for grant at December 31, 2005 | 5,139,911 | |||
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Weighted average exercise price of options outstanding | $ | 9.08 | $ | 6.79 | $ | 4.62 | ||||||
Weighted average exercise price of options exercised | $ | 2.52 | $ | 2.56 | $ | 4.10 | ||||||
Weighted average price of options forfeited | $ | 11.13 | $ | 8.15 | $ | 5.14 |
F-57
Table of Contents
Notes to Consolidated Financial Statements
Weighted Average | ||||||||||||||||||||||||
Number of | Risk Free | Expected | ||||||||||||||||||||||
Year of | Options | Grant Date | Exercise | Interest | Expected | Dividend | ||||||||||||||||||
Grant | Granted | Fair Value | Price | Rate | Volatility | Yield | ||||||||||||||||||
2003 | 1,015,123 | $ | 3.66 | $ | 7.45 | 3.34 | % | 50.00 | % | 1.27 | % | |||||||||||||
2004 | 776,100 | $ | 8.42 | $ | 18.20 | 4.32 | % | 41.00 | % | 0.73 | % | |||||||||||||
2005 | 858,571 | $ | 7.27 | $ | 18.74 | 4.10 | % | 31.00 | % | 0.76 | % |
Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||||||||
Class of | Range of | Number | Average | Average | Number | Average | ||||||||||||||||||
Common | Exercise | Outstanding | Remaining | Exercise | Exercisable | Exercise | ||||||||||||||||||
Stock | Prices | at 12/31/05 | Contractual Life | Price | at 12/31/05 | Price | ||||||||||||||||||
A | $ | 1.92 to $3.83 | 1,405,105 | 3.4 years | $ | 3.22 | 722,036 | $ | 3.45 | |||||||||||||||
A | $ | 3.84 to $6.70 | 1,180,961 | 2.4 years | 4.98 | 1,179,459 | 4.98 | |||||||||||||||||
A | $ | 6.71 to $9.36 | 1,811,822 | 6.7 years | 7.98 | 65,310 | 8.01 | |||||||||||||||||
A | $ | 9.37 to $19.02 | 1,641,365 | 8.9 years | 18.32 | 89,415 | 15.42 | |||||||||||||||||
6,039,253 | 5.7 years | $ | 9.08 | 2,056,220 | $ | 4.99 | ||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||||||||
Class of | Range of | Number | Average | Average | Number | Average | ||||||||||||||||||
Common | Exercise | Outstanding | Remaining | Exercise | Exercisable | Exercise | ||||||||||||||||||
Stock | Prices | at 12/31/04 | Contractual Life | Price | at 12/31/04 | Price | ||||||||||||||||||
A | $ | 1.73 to $ 1.91 | 620,358 | 0.3 years | $ | 1.77 | 620,358 | $ | 1.77 | |||||||||||||||
A | $ | 1.92 to $ 3.83 | 1,533,561 | 4.3 years | 3.19 | 469,150 | 3.71 | |||||||||||||||||
A | $ | 3.84 to $ 6.70 | 1,347,449 | 3.4 years | 4.94 | 1,345,947 | 4.94 | |||||||||||||||||
A | $ | 6.71 to $ 9.36 | 1,897,377 | 7.6 years | 8.00 | 108,416 | 8.03 | |||||||||||||||||
A | $ | 9.37 to $18.20 | 776,100 | 9.5 years | 18.20 | 35,000 | 18.20 | |||||||||||||||||
6,174,845 | 5.4 years | $ | 6.79 | 2,578,871 | $ | 4.28 | ||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||||||||
Class of | Range of | Number | Average | Average | Number | Average | ||||||||||||||||||
Common | Exercise | Outstanding | Remaining | Exercise | Exercisable | Exercise | ||||||||||||||||||
Stock | Prices | at 12/31/03 | Contractual Life | Price | at 12/31/03 | Price | ||||||||||||||||||
A | $ | 1.73 to 1.91 | 1,673,384 | 0.9 years | $ | 1.77 | 1,281,013 | $ | 1.77 | |||||||||||||||
A | $ | 1.92 to 3.83 | 1,563,844 | 5.3 years | 3.19 | 368,829 | 3.71 | |||||||||||||||||
A | $ | 3.84 to 6.70 | 1,752,835 | 4.5 years | 4.89 | 725,370 | 5.00 | |||||||||||||||||
A | $ | 6.71 to 9.36 | 1,948,157 | 8.7 years | 8.00 | 82,995 | 8.38 | |||||||||||||||||
6,938,220 | 5.0 years | $ | 4.62 | 2,458,207 | $ | 3.23 | ||||||||||||||||||
F-58
Table of Contents
Notes to Consolidated Financial Statements
RB Holdings | ||||
Outstanding | ||||
Options | ||||
Outstanding at December 31, 2002 | 1,477,500 | |||
Exercised | — | |||
Forfeited | (22,500 | ) | ||
Issued | 75,000 | |||
Outstanding at December 31, 2003 | 1,530,000 | |||
Exercised | (90,000 | ) | ||
Forfeited | (15,000 | ) | ||
Issued | 820,500 | |||
Outstanding at December 31, 2004 | 2,245,500 | |||
Exercised | — | |||
Forfeited | (198,500 | ) | ||
Issued | 22,000 | |||
Outstanding at December 31, 2005 | 2,069,000 | |||
Available for grant at December 31, 2005 | 368,500 | |||
F-59
Table of Contents
Notes to Consolidated Financial Statements
2005 | 2004 | 2003 | ||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Number | Exercise | Number | Exercise | Number | Exercise | |||||||||||||||||||
of Options | Price | of Options | Price | of Options | Price | |||||||||||||||||||
Options outstanding at beginning of year | 725,250 | $ | 20.54 | — | $ | — | — | $ | — | |||||||||||||||
Granted | 594,826 | $ | 31.64 | 757,500 | $ | 20.52 | — | $ | — | |||||||||||||||
Exercised | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||
Forfeited | (14,900 | ) | $ | 21.76 | (32,250 | ) | $ | 20.15 | — | $ | — | |||||||||||||
Options outstanding at end of year | 1,305,176 | $ | 25.59 | 725,250 | $ | 20.54 | $ | — | ||||||||||||||||
Options exercisable at end of year | 55,176 | $ | 22.33 | 45,000 | $ | 20.15 | — | $ | — | |||||||||||||||
Stock available for equity compensation Grants at end of year | 187,937 | 774,750 | — | |||||||||||||||||||||
Weighted average fair market value Per share of options granted during The year under SFAS No. 123 | $ | 15.19 | $ | 11.94 | $ | — | ||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||
Remaining | Exercise | ||||||||||||||
Exercise Price | Options | Contractual Life | Options | Price | |||||||||||
$19.28 – $22.49 | 629,100 | 8.0 | 45,000 | $ | 20.15 | ||||||||||
$22.50 – $25.70 | 120,750 | 8.9 | — | — | |||||||||||
$25.71 – $32.13 | 555,326 | 9.4 | 10,176 | $ | 31.95 | ||||||||||
1,305,176 | 8.7 | 55,176 | $ | 22.33 | |||||||||||
F-60
Table of Contents
Notes to Consolidated Financial Statements
December 31, | ||||||||
2005 | 2004 | |||||||
Projected benefit obligation at the beginning of the year | $ | 26,234 | $ | 23,094 | ||||
Interest cost | 1,565 | 1,508 | ||||||
Actuarial loss | 2,361 | 2,421 | ||||||
Benefits paid | (779 | ) | (789 | ) | ||||
Projected benefit obligation at end of year | $ | 29,381 | $ | 26,234 | ||||
December 31, | ||||||||
2005 | 2004 | |||||||
Fair value of Plan assets at the beginning of year | $ | 25,097 | $ | 23,927 | ||||
Actual return on Plan assets | 1,833 | 1,959 | ||||||
Employer contribution | — | — | ||||||
Benefits paid | (779 | ) | (789 | ) | ||||
Fair value of Plan assets as of actuarial date | $ | 26,151 | $ | 25,097 | ||||
F-61
Table of Contents
Notes to Consolidated Financial Statements
December 31, | ||||||||
2005 | 2004 | |||||||
Actuarial present value of projected benefit obligation for service rendered to date | $ | (29,381 | ) | $ | (26,234 | ) | ||
Plan assets at fair value as of the actuarial date | 26,151 | 25,097 | ||||||
(Unfunded) accumulated benefit obligation (1) | (3,230 | ) | (1,137 | ) | ||||
Unrecognized net loss from past experience different from that assumed and effects of changes in assumptions | 9,917 | 7,661 | ||||||
Prepaid pension cost (2) | $ | 6,687 | $ | 6,524 | ||||
(1) | The measurement date for the accumulated benefit obligation was December 31, 2005 and 2004. The unfunded accumulated benefit obligation was recorded in other liabilities in the Company’s consolidated statement of financial condition. |
(2) | The prepaid pension cost was reversed into other comprehensive income and a minimum pension liability was recorded for the unfunded accumulated benefit obligation. |
December 31, | ||||||||
2005 | 2004 | |||||||
Change in prepaid pension cost | $ | — | $ | (6,524 | ) | |||
Change in minimum pension liability | (2,093 | ) | (1,137 | ) | ||||
Change in deferred tax assets | 942 | 2,758 | ||||||
Other adjustments | 162 | — | ||||||
Decrease in other comprehensive income | $ | (989 | ) | $ | (4,903 | ) | ||
For the Years Ended | |||||||||||||
2005 | 2004 | 2003 | |||||||||||
Service cost benefits earned during the period | $ | — | $ | — | $ | — | |||||||
Interest cost on projected benefit obligation | 1,565 | 1,508 | 1,485 | ||||||||||
Expected return on plan assets | (2,100 | ) | (1,998 | ) | (1,470 | ) | |||||||
Amortization of unrecognized net gains and losses | 698 | 723 | 1,212 | ||||||||||
Net periodic pension expense (1) | $ | 163 | $ | 233 | $ | 1,227 | |||||||
(1) | Periodic pension expense is included as an increase in compensation expense. |
For the Years Ended | |||||||||||||||||||
December 31, | |||||||||||||||||||
2005 | 2004 | 2003 | |||||||||||||||||
Weighted average discount rate | 5.50 | % | 6.00 | % | 6.75 | % | |||||||||||||
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 | % |
F-62
Table of Contents
Notes to Consolidated Financial Statements
Plan Assets | |||||||||
At December 31, | |||||||||
2005 | 2004 | ||||||||
Equity securities | 76.19 | % | 76.62 | % | |||||
Debt securities | 20.54 | 21.57 | |||||||
Cash | 3.27 | 1.81 | |||||||
Total | 100.00 | % | 100.00 | % | |||||
Pension | ||||
Expected Future Service | Benefits | |||
2006 | $ | 890 | ||
2007 | 913 | |||
2008 | 980 | |||
2009 | 1,177 | |||
2010 | 1,372 | |||
Years 2011-2015 | 7,672 |
F-63
Table of Contents
Notes to Consolidated Financial Statements
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Employee Salary Contribution Limit (1) | $ | 14 | $ | 13 | $ | 12 | ||||||
Percentage of Salary Limitation | 75 | % | 75 | % | 75 | % | ||||||
Total Match Contribution (2) | $ | 2,037 | $ | 1,790 | $ | 1,558 | ||||||
Vesting of Employer Match | Immediate | Immediate | Immediate |
(1) | For the 2005, 2004 and 2003 plan year, employees over the age of 50 were entitled to contribute $18,000, $16,000 and $14,000, respectively. |
(2) | The employer matched 100% of the first 3% of employee contributions and 50% of the next 2% of employee contributions. |
F-64
Table of Contents
Notes to Consolidated Financial Statements
Year Ending December 31, | Amount | |||
2006 | $ | 17,099 | ||
2007 | 16,374 | |||
2008 | 14,163 | |||
2009 | 11,593 | |||
2010 | 7,299 | |||
Thereafter | 27,957 | |||
Total | $ | 94,485 | ||
For the Years Ended December 31, | ||||||||||||
(In thousands) | 2005 | 2004 | 2003 | |||||||||
Rental expense for premises and equipment | $ | 21,365 | $ | 20,231 | $ | 18,603 | ||||||
F-65
Table of Contents
Notes to Consolidated Financial Statements
December 31, | ||||||||
2005 | 2004 | |||||||
BFC Activities | ||||||||
Commitment to acquire Benihana Preferred Stock | $ | — | $ | 10,000 | ||||
Financial Services | ||||||||
Commitments to sell fixed rate residential loans | 13,634 | 19,537 | ||||||
Commitments to sell variable rate residential loans | 4,438 | 6,588 | ||||||
Forward contract to purchase mortgage-backed securities | — | 3,947 | ||||||
Commitments to purchase variable rate residential loans | 6,689 | 40,015 | ||||||
Commitments to originate loans held for sale | 16,220 | 21,367 | ||||||
Commitments to originate loans held to maturity | 311,081 | 238,429 | ||||||
Commitments to extend credit, including the undisbursed portion of loans in process | 1,151,054 | 1,170,191 | ||||||
Commitments to purchase branch facilities land | 5,334 | — | ||||||
Standby letters of credit | 67,868 | 55,605 | ||||||
Commercial lines of credit | 119,639 | 121,688 | ||||||
Homebuilding & Real Estate Development | ||||||||
Commitments to purchase properties for development | 186,200 | 208,315 |
F-66
Table of Contents
Notes to Consolidated Financial Statements
F-67
Table of Contents
Notes to Consolidated Financial Statements
Purchase | Units/ | Expected | ||||||||||
Price | Acres | Closing | ||||||||||
Homebuilding Division | $186.2 million | 2,692 Units | 2006-2007 |
F-68
Table of Contents
Notes to Consolidated Financial Statements
For Capital | To Be Considered | |||||||||||||||||||||||||
Actual | Adequacy Purposes | Well Capitalized | ||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
As of December 31, 2005: | ||||||||||||||||||||||||||
Total risk-based capital | $ | 512,664 | 11.50 | % | $ | 356,526 | 8.00 | % | $ | 445,657 | 10.00 | % | ||||||||||||||
Tier I risk-based capital | $ | 446,419 | 10.02 | % | $ | 178,263 | 4.00 | % | $ | 267,394 | 6.00 | % | ||||||||||||||
Tangible capital | $ | 446,419 | 7.42 | % | $ | 90,235 | 1.50 | % | $ | 90,235 | 1.50 | % | ||||||||||||||
Core capital | $ | 446,419 | 7.42 | % | $ | 240,627 | 4.00 | % | $ | 300,784 | 5.00 | % | ||||||||||||||
As of December 31, 2004: | ||||||||||||||||||||||||||
Total risk-based capital | $ | 476,600 | 10.80 | % | $ | 352,886 | 8.00 | % | $ | 441,107 | 10.00 | % | ||||||||||||||
Tier I risk-based capital | $ | 405,482 | 9.19 | % | $ | 176,443 | 4.00 | % | $ | 264,664 | 6.00 | % | ||||||||||||||
Tangible capital | $ | 405,482 | 6.83 | % | $ | 89,030 | 1.50 | % | $ | 89,030 | 1.50 | % | ||||||||||||||
Core capital | $ | 405,482 | 6.83 | % | $ | 237,413 | 4.00 | % | $ | 296,766 | 5.00 | % |
F-69
Table of Contents
Notes to Consolidated Financial Statements
F-70
Table of Contents
Notes to Consolidated Financial Statements
Parent Company Condensed Statements of Financial Condition
(In thousands)
December 31, | ||||||||
Assets | 2005 | 2004 | ||||||
Cash and cash equivalents | $ | 26,683 | $ | 1,520 | ||||
Investment securities | 2,034 | 1,800 | ||||||
Investment in Benihana, Inc. | 20,000 | 10,000 | ||||||
Investment in venture partnerships | 950 | 971 | ||||||
Investment in BankAtlantic Bancorp, Inc. | 112,218 | 103,125 | ||||||
Investment in Levitt Corporation | 58,111 | 48,983 | ||||||
Investment in and advances to wholly owned subsidiaries (a) | 1,631 | 31,867 | ||||||
Loans receivable | 2,071 | 3,364 | ||||||
Other assets | 960 | 2,596 | ||||||
Total assets | $ | 224,658 | $ | 204,226 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Note payable | $ | — | $ | 10,483 | ||||
Advances from and negative basis in wholly owned subsidiaries (a) | 462 | 34,636 | ||||||
Other liabilities | 7,417 | 6,828 | ||||||
Deferred income taxes | 33,699 | 27,028 | ||||||
Total liabilities | 41,578 | 78,975 | ||||||
Total shareholders’ equity | 183,080 | 125,251 | ||||||
Total liabilities and shareholders’ equity | $ | 224,658 | $ | 204,226 | ||||
For Each of the Years in the Three Year Period Ended December 31, 2005
(In thousands)
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Revenues | $ | 1,775 | $ | 3,514 | $ | 1,051 | ||||||
Expenses (a) | 14,904 | 6,717 | 3,954 | |||||||||
(Loss) before undistributed earnings from subsidiaries | (13,129 | ) | (3,203 | ) | (2,903 | ) | ||||||
Equity from earnings in BankAtlantic Bancorp | 12,689 | 15,694 | 15,222 | |||||||||
Equity from earnings in Levitt | 9,125 | 10,265 | — | |||||||||
Equity from earnings in other subsidiaries (a) | 6,671 | (35 | ) | (1,428 | ) | |||||||
Income before income taxes | 15,356 | 22,721 | 10,891 | |||||||||
Provision for income taxes | 5,402 | 8,321 | 3,774 | |||||||||
Income from continuing operations | 9,954 | 14,400 | 7,117 | |||||||||
Discontinued operations, net of tax | 2,820 | (170 | ) | (95 | ) | |||||||
Net income | 12,774 | 14,230 | 7,022 | |||||||||
5% Preferred Stock dividends | 750 | 392 | — | |||||||||
Net Income available to common shareholders | $ | 12,024 | $ | 13,838 | $ | 7,022 | ||||||
F-71
Table of Contents
Notes to Consolidated Financial Statements
For Each of the Years in the Three Year Period Ended December 31, 2005
(In thousands)
For the Years Ended December 31, | ||||||||||||
2005 | 2004 | 2003 | ||||||||||
Operating Activities: | ||||||||||||
Net cash used in operating activities | (2,189 | ) | (6,087 | ) | (2,358 | ) | ||||||
Investing Activities: | ||||||||||||
Dividends from subsidiaries | 2,254 | 2,074 | 1,686 | |||||||||
Capital contribution to subsidiaries | — | (1,000 | ) | — | ||||||||
Distribution from venture partnerships | — | 1,423 | 344 | |||||||||
Decrease in securities available for sale | — | — | 785 | |||||||||
Additions to office property and equipment | (29 | ) | — | — | ||||||||
Investment in Benihana convertible preferred stock | (10,000 | ) | (10,000 | ) | — | |||||||
Net cash (used in) provided by investing activities | (7,775 | ) | (7,503 | ) | 2,815 | |||||||
Financing Activities: | ||||||||||||
Borrowing | 1,000 | 4,468 | — | |||||||||
Repayment of borrowings | (11,483 | ) | — | — | ||||||||
Proceeds from issuance of Class A Common Stock net of issuance costs | 46,188 | — | 282 | |||||||||
Proceeds from issuance of 5% Preferred Stock, net of issuance cost | — | 14,988 | — | |||||||||
Proceeds from issuance of Common Stock upon exercise of stock option | 172 | 1,791 | — | |||||||||
Retirement of common stock | — | (7,281 | ) | — | ||||||||
5% Preferred Stock dividends paid | (750 | ) | (392 | ) | — | |||||||
Net cash provided by financing activities | 35,127 | 13,574 | 282 | |||||||||
Increase in cash and cash equivalents | 25,163 | (16 | ) | 739 | ||||||||
Cash at beginning of period | 1,520 | 1,536 | 797 | |||||||||
Cash at end of period | $ | 26,683 | $ | 1,520 | $ | 1,536 | ||||||
Supplementary disclosure of non-cash investing and financing activities | ||||||||||||
Interest paid on borrowings | $ | 320 | $ | 357 | $ | 333 | ||||||
Net (decrease) increase in shareholders’ equity from the effect of subsidiaries’ capital transactions, net of income taxes | (474 | ) | 5,812 | (252 | ) | |||||||
(Decrease) increase in accumulated other comprehensive income, net of taxes | (417 | ) | (588 | ) | 662 | |||||||
(Decrease) increase in shareholders’ equity for the tax effect related to the exercise of employee stock options | (12 | ) | 11,017 | 550 | ||||||||
Decrease in advances due from wholly-owned subsidiaries | (23,744 | ) | — | — | ||||||||
Dividends from wholly-owned subsidiaries | 23,744 | — | — | |||||||||
Levitt investment transfer from BankAtlantic Bancorp resulting from the spin-off transaction | — | — | 27,885 |
(a) | The significant declines in investments in wholly owned subsidiaries and advances to wholly owned subsidiaries results from dividends or forgiveness of debt, respectively, being recorded by inactive subsidiaries. During the year ended December 31, 2005, expenses includes the write-off of wholly-owned subsidiaries’ inter-company advances of approximately $6.6 million, and the equity from earnings in other subsidiaries includes the earnings recognized by BFC’s wholly-owned subsidiaries. These inter-company advances were eliminated in consolidation. |
F-72
Table of Contents
Notes to Consolidated Financial Statements
First | Second | Third | Fourth | |||||||||||||||||
2005 | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||
Revenues | $ | 363,375 | $ | 307,830 | $ | 300,938 | $ | 302,708 | $ | 1,274,851 | ||||||||||
Costs and expenses | 288,840 | 267,502 | 268,758 | 291,801 | 1,116,901 | |||||||||||||||
74,535 | 40,328 | 32,180 | 10,907 | 157,950 | ||||||||||||||||
Equity in earnings from unconsolidated affiliates | 2,359 | 4,908 | 5,886 | 251 | 13,404 | |||||||||||||||
Income before income taxes and noncontrolling interest | 76,894 | 45,236 | 38,066 | 11,158 | 171,354 | |||||||||||||||
Provision for income taxes | 32,019 | 18,707 | 14,328 | 5,202 | 70,256 | |||||||||||||||
Noncontrolling interest in income of consolidated subsidiaries | 40,366 | 23,708 | 21,589 | 5,481 | 91,144 | |||||||||||||||
Income from continuing operations | 4,509 | 2,821 | 2,149 | 475 | 9,954 | |||||||||||||||
(Loss) income from discontinued operations, net of tax | (108 | ) | (90 | ) | (92 | ) | 3,110 | 2,820 | ||||||||||||
Net income | 4,401 | 2,731 | 2,057 | 3,585 | 12,774 | |||||||||||||||
5% Preferred Stock dividends | 188 | 187 | 187 | 188 | 750 | |||||||||||||||
Net income available to common shareholders | $ | 4,213 | $ | 2,544 | $ | 1,870 | $ | 3,397 | $ | 12,024 | ||||||||||
Basic earnings per share from continuing operations | $ | 0.16 | $ | 0.10 | $ | 0.06 | $ | 0.01 | $ | 0.32 | ||||||||||
Basic earnings per share from discontinued operations | — | — | — | 0.10 | 0.10 | |||||||||||||||
Basic earnings per share | $ | 0.16 | $ | 0.10 | $ | 0.06 | $ | 0.11 | $ | 0.42 | ||||||||||
Diluted earnings per share from continuing operations | $ | 0.14 | $ | 0.08 | $ | 0.05 | $ | 0.01 | $ | 0.28 | ||||||||||
Basic earnings per share from discontinued operations | — | — | — | 0.09 | 0.09 | |||||||||||||||
Diluted earnings per share | $ | 0.14 | $ | 0.08 | $ | 0.05 | $ | 0.10 | $ | 0.37 | ||||||||||
Basic weighted average number of common shares outstanding | 25,750 | 26,381 | 31,751 | 31,829 | 28,952 | |||||||||||||||
Diluted weighted average number of common shares outstanding | 28,336 | 28,902 | 34,121 | 33,625 | 31,219 | |||||||||||||||
F-73
Table of Contents
Notes to Consolidated Financial Statements
First | Second | Third | Fourth | |||||||||||||||||
2004 | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||
Revenues | $ | 264,488 | $ | 289,566 | $ | 280,046 | $ | 331,999 | $ | 1,166,099 | ||||||||||
Costs and expenses | 217,111 | 243,739 | 238,789 | 283,566 | 983,205 | |||||||||||||||
Income before income taxes and noncontrolling interest | 47,377 | 45,827 | 41,257 | 48,433 | 182,894 | |||||||||||||||
Equity in earnings from unconsolidated affiliates | 5,811 | 5,023 | 5,888 | 2,881 | 19,603 | |||||||||||||||
Income before income taxes and noncontrolling interest | 53,188 | 50,850 | 47,145 | 51,314 | 202,497 | |||||||||||||||
Provision for income taxes | 22,202 | 21,967 | 19,144 | 20,790 | 84,103 | |||||||||||||||
Noncontrolling interest in income of consolidated subsidiaries | 26,622 | 25,575 | 24,291 | 27,506 | 103,994 | |||||||||||||||
Income from continuing operations | 4,364 | 3,308 | 3,710 | 3,018 | 14,400 | |||||||||||||||
(Loss) income from discontinued operations, net of tax | 8 | (47 | ) | (50 | ) | (81 | ) | (170 | ) | |||||||||||
Net income | 4,372 | 3,261 | 3,660 | 2,937 | 14,230 | |||||||||||||||
5% Preferred Stock dividends | — | 17 | 187 | 188 | 392 | |||||||||||||||
Net income available to common shareholders | $ | 4,372 | $ | 3,244 | $ | 3,473 | $ | 2,749 | $ | 13,838 | ||||||||||
Basic earnings per share from continuing operations | $ | 0.18 | $ | 0.13 | $ | 0.14 | $ | 0.12 | $ | 0.58 | ||||||||||
Basic earnings per share from discontinued operations | — | — | — | (0.01 | ) | (0.01 | ) | |||||||||||||
Basic earnings per share | $ | 0.18 | $ | 0.13 | $ | 0.14 | $ | 0.11 | $ | 0.57 | ||||||||||
Diluted earnings per share from continuing operations | $ | 0.15 | $ | 0.11 | $ | 0.12 | $ | 0.10 | $ | 0.48 | ||||||||||
Diluted earnings per share from discontinued operations | — | — | — | (0.01 | ) | (0.01 | ) | |||||||||||||
Diluted earnings per share | $ | 0.15 | $ | 0.11 | $ | 0.12 | $ | 0.09 | $ | 0.47 | ||||||||||
Basic weighted average number of common shares outstanding | 23,824 | 24,195 | 24,215 | 24,507 | 24,183 | |||||||||||||||
Diluted weighted average number of common shares outstanding | 27,706 | 27,795 | 27,761 | 27,892 | 27,806 | |||||||||||||||
F-74
Table of Contents
Notes to Consolidated Financial Statements
F-75
Table of Contents
Notes to Consolidated Financial Statements
December 31, 2005 | December 31, 2004 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 305,437 | $ | 305,437 | $ | 224,720 | $ | 224,720 | ||||||||
Securities available for sale | 676,660 | 676,660 | 749,001 | 749,001 | ||||||||||||
Securities owned | 180,292 | 180,292 | 125,443 | 125,443 | ||||||||||||
Investment securities | 384,968 | 384,646 | 317,891 | 317,416 | ||||||||||||
Federal home loan bank stock | 69,931 | 69,931 | 78,619 | 78,619 | ||||||||||||
Loans receivable including loans held for sale, net | 4,632,104 | 4,602,181 | 4,561,073 | 4,568,883 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Deposits | $ | 3,752,676 | $ | 3,755,089 | $ | 3,457,202 | $ | 3,451,853 | ||||||||
Short term borrowings | 249,263 | 249,263 | 362,002 | 361,986 | ||||||||||||
Advances from FHLB | 1,283,532 | 1,288,012 | 1,544,497 | 1,564,188 | ||||||||||||
Securities sold but not yet purchased | 35,177 | 35,177 | 39,462 | 39,462 | ||||||||||||
Secured borrowings | 138,270 | 138,270 | — | — | ||||||||||||
Subordinated debentures, notes and bonds payable | 392,784 | 388,535 | 278,605 | 277,998 | ||||||||||||
Junior subordinated debentures | 317,390 | 313,560 | 263,266 | 265,955 |
F-76
Table of Contents
Notes to Consolidated Financial Statements
F-77
Table of Contents
Notes to Consolidated Financial Statements
For the Years Ended December 31, | ||||||||||||
(In thousands, except per share data) | 2005 | 2004 | 2003 | |||||||||
Basic earnings per share | ||||||||||||
Numerator: | ||||||||||||
Income from continuing operations | 9,954 | 14,400 | $ | 5,974 | ||||||||
Less: Preferred stock dividends | 750 | 392 | — | |||||||||
Income available to common shareholders | 9,204 | 14,008 | 5,974 | |||||||||
Discontinued operations, net of taxes | 2,820 | (170 | ) | 1,048 | ||||||||
Net income available to common shareholders | $ | 12,024 | $ | 13,838 | $ | 7,022 | ||||||
Denominator: | ||||||||||||
Weighted average number of common shares outstanding | 31,345 | 26,576 | 25,211 | |||||||||
Eliminate RAG weighted average number of common shares | (2,393 | ) | (2,393 | ) | (2,393 | ) | ||||||
Basic weighted average number of common shares outstanding | 28,952 | 24,183 | 22,818 | |||||||||
Basic earnings per share: | ||||||||||||
Earnings per share from continuing operations | $ | 0.32 | $ | 0.58 | $ | 0.26 | ||||||
Earnings per share from discontinued operations | 0.10 | (0.01 | ) | 0.05 | ||||||||
Basic earnings per share | $ | 0.42 | $ | 0.57 | $ | 0.31 | ||||||
Diluted earnings per share | ||||||||||||
Numerator | ||||||||||||
Income available to common shareholders | $ | 9,204 | $ | 14,008 | $ | 5,974 | ||||||
Effect of securities issuable by subsidiaries | (342 | ) | (780 | ) | (505 | ) | ||||||
Income available after assumed dilution | $ | 8,862 | $ | 13,228 | $ | 5,469 | ||||||
Discontinued operations, net of taxes | $ | 2,820 | $ | (170 | ) | $ | 1,048 | |||||
Effect of securities issuable by subsidiaries | — | — | (17 | ) | ||||||||
Discontinued operations, net of taxes after assumed dilution | $ | 2,820 | $ | (170 | ) | $ | 1,031 | |||||
Net income available after assumed dilution | $ | 11,682 | $ | 13,058 | $ | 6,500 | ||||||
Denominator | ||||||||||||
Weighted average number of common shares outstanding | 31,345 | 26,576 | 25,211 | |||||||||
Eliminate RAG weighted average number of common shares | (2,393 | ) | (2,393 | ) | (2,393 | ) | ||||||
Common stock equivalents resulting from stock-based compensation | 2,267 | 3,623 | 3,213 | |||||||||
Diluted weighted average shares outstanding | 31,219 | 27,806 | 26,031 | |||||||||
Diluted earnings per share | ||||||||||||
Earnings per share from continuing operations | $ | 0.28 | $ | 0.48 | $ | 0.21 | ||||||
Earnings per share from discontinued operations | 0.09 | (0.01 | ) | 0.04 | ||||||||
Diluted earnings per share | $ | 0.37 | $ | 0.47 | $ | 0.25 | ||||||
F-78
Table of Contents
Notes to Consolidated Financial Statements
For the Year Ended December 31, 2005 | ||||||||||||||||
(in thousands) | BFC | Levitt | Bluegreen | Total | ||||||||||||
Service fees and office overhead | $ | 368 | $ | 883 | $ | 78 | $ | 1,329 | ||||||||
Total | $ | 368 | $ | 883 | $ | 78 | $ | 1,329 | ||||||||
For the Year Ended December 31, 2004 | ||||||||||||
(in thousands) | BFC | Levitt | Total | |||||||||
Service fees and office overhead | $ | 124 | $ | 604 | $ | 728 | ||||||
F-79
Table of Contents
Notes to Consolidated Financial Statements
For the Year Ended December 31, 2005 | ||||||||||||
(in thousands) | Levitt | Bluegreen | Total | |||||||||
Property development | $ | 438 | $ | — | $ | 438 | ||||||
Risk management | — | 218 | 218 | |||||||||
Total | $ | 438 | $ | 218 | $ | 656 | ||||||
For the Year Ended December 31, 2004 | ||||||||||||
(in thousands) | Levitt | Bluegreen | Total | |||||||||
Property development | $ | 40 | $ | — | $ | 40 | ||||||
Risk management | — | 100 | 100 | |||||||||
Total | $ | 40 | $ | 100 | $ | 140 | ||||||
F-80
Table of Contents
Notes to Consolidated Financial Statements
December 31, | ||||||||
2005 | 2004 | |||||||
BankAtlantic Bancorp | $ | 404,118 | $ | 366,140 | ||||
Levitt | 291,675 | 245,756 | ||||||
Joint Venture Partnerships | 729 | 756 | ||||||
$ | 696,522 | $ | 612,652 | |||||
F-81
Table of Contents
Notes to Consolidated Financial Statements
F-82
Table of Contents
Notes to Consolidated Financial Statements
F-83
Table of Contents
/s/ Alan B. Levan | /s/ Glen R. Gilbert | |||||
Alan B. Levan | Glen R. Gilbert | |||||
Chief Executive Officer | Chief Financial Officer | |||||
March 29, 2006 | March 29, 2006 |
Table of Contents
Table of Contents
Exhibit Number | Description | Reference | ||
3.1 | Articles of Incorporation, as amended and restated | Exhibit 3.1 of Registrant’s Registration Statement on Form 8-A filed October 16, 1997 | ||
3.2 | Amendment to Articles of Incorporation, as amended and restated | Exhibit 4 of Registrant’s Registration Statement on Form 8-K filed June 18, 2002 and Appendix A of Registrant’s Schedule 14c filed January 18, 2005 | ||
3.3 | By-laws | Exhibit 3.2 of Registrant’s Registration Statement on Form 8-A filed October 16, 1997 | ||
10.1 | BFC Financial Corporation 2005 Stock Incentive Plan | Appendix A to the Registrant’s Definitive Proxy Statement filed on April 18, 2005 | ||
12.1 | Statement re computation of ratios — Ratio of earnings to fixed charges | 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 | ||
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed with this Report | ||
32.2 | Certification pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed with this Report | ||
Table of Contents
BFC FINANCIAL CORPORATION | ||||
March 29, 2006 | By: /s/ Alan B. Levan | |||
Alan B. Levan, Chairman of the Board, | ||||
President and Chief Executive Officer |
Signature | Title | Date | ||
/s/ Alan B. Levan | March 29, 2006 | |||
Alan B. Levan | Chairman of the Board, President and Chief Executive Officer | |||
/s/ Glen R. Gilbert | March 29, 2006 | |||
Glen R. Gilbert | Executive Vice President And Chief Financial Officer | |||
/s/ John E. Abdo | Vice Chairman of the Board | March 29, 2006 | ||
/s/ D. Keith Cobb | Director | March 29, 2006 | ||
/s/ Earl Pertnoy | Director | March 29, 2006 | ||
/s/ Oscar J. Holzmann | Director | March 29, 2006 | ||
/s/ Neil A. Sterling | Director | March 29, 2006 |
Table of Contents
Exhibit | Description | |
12.1 | Statement re: computation of ratios — Ratio of earnings to fixed charges | |
21.1 | Subsidiaries of the Registrant | |
23.1 | Consent of PricewaterhouseCoopers LLP | |
23.2 | Consent of Ernst & Young LLP | |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2 | Certification pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |