BBX Capital Inc (BBXIA)

[samplescave]

BFCF ~ BankAtlantic Bancorp Reports Financial Results for the Second Quarter, 2010
Last update: 8/4/2010 8:03:00 AM
FORT LAUDERDALE, Fla., Aug 04, 2010 (BUSINESS WIRE) -- BankAtlantic Bancorp, Inc. (BBX) today reported a net loss from continuing operations of ($51.3) million, or ($1.02) per diluted share, for the quarter ended June 30, 2010, compared to a net loss from continuing operations of ($38.4) million, or ($2.54) per diluted share, for the quarter ended June 30, 2009.
BankAtlantic Bancorp's Chairman and Chief Executive Officer, Alan B. Levan, commented, "While today's uncertain economic environment remains a challenge for the financial industry and BankAtlantic, we believe this quarter's losses may be a turning point and feel confident that our plans and strategies will result in a stronger, leaner, more profitable company. Despite twelve quarters of losses, we believe that BankAtlantic has now endured the worst of this recession and weathered the economic tsunami that hit Florida. BankAtlantic's loss this quarter is primarily a result of loan provisions that increased our overall allowance for loan losses to 5.09% of total loans, an increase of 10% in coverage of our total loan portfolio on a percentage basis. This loan loss reserve increase reflects quarterly impairment analyses based on collateral valuations in a depressed real estate market.
"We believe we are at last beginning to see certain improved credit trends in BankAtlantic's portfolio. In each of the Commercial real estate, Residential real estate, Consumer and Commercial business loan portfolio categories during the second quarter of 2010, we experienced declines in both the dollar amount and percentage of portfolio delinquencies, excluding non-accrual loans. In the aggregate, these early stage delinquencies, which we believe may be indicative of future loss trends, improved over 50% as compared to the prior quarter, led by declines in delinquencies in our Commercial real estate and Residential real estate portfolio. Further, our Residential real estate portfolio, which comprises approximately 40% of our loan portfolio, and Consumer portfolio both experienced improvements for their second and third consecutive quarters, respectively, in the migration of delinquencies from one payment to two payments delinquent. Based on these trends, we believe that we may have seen the peak of our impairments, provisions and delinquencies, and it is not insignificant that over $40 million of our Commercial and Commercial real estate non-accrual loans are current and paying under their loan agreements. While many challenges remain, we see a new day for BankAtlantic and for Florida on the horizon.
"Nearly three years ago, BankAtlantic was among the first in the country to recognize the cracks in the Florida economy and the potential havoc it could create. While our portfolios were not the first to be impacted, we believe we were early to recognize the problem. During this period, BankAtlantic worked hard to face the challenges head on and made important strategic and structural decisions which included:
-- "Increasing its reserves and aggressively establishing provisions on its problem loans;
-- "Reducing core non-interest expenses by approximately 30%;
-- "Shrinking its balance sheet by nearly a third;
-- "Virtually eliminating its leverage and significantly improving its liquidity position;
-- "Significantly growing its core deposit base while maintaining its very low cost of deposits;
-- "Continuing to maintain its net interest margin; and
-- "Consistently maintaining its regulatory capital ratios well in excess of requirements.
"As we move forward, we believe BankAtlantic will now be positioned to become Florida's premier financial institution. To this end, we have decided to pursue several aggressive steps over the coming months in an effort to take advantage of the opportunities available in our markets. These include:
-- "Concentrating our efforts in South Florida, our strongest market, and beginning to seek buyers for our Tampa operations. Our Tampa footprint has 19 locations and approximately $400 million in deposits. Our annualized direct and indirect expenses related to the Tampa operations that would be eliminated in a sale are estimated between $15 and $20 million. We anticipate engaging Stifel, Nicolaus & Company, Inc. to assist us in marketing and selling our Tampa area operations prior to year end. If consummated, we believe this transaction will further improve our capital ratios, reduce expenses and increase core earnings.
-- "In July, 2010, to further reduce expenses and improve our efficiency ratio, we reduced our staff by approximately 7% of our workforce, reducing annualized expenses an anticipated $8 to $10 million. We have also engaged a consulting firm for additional assistance in our process improvement and efficiency initiatives.
-- "Continuing to focus on our regulatory capital levels so as to provide BankAtlantic with strategic flexibility. Additionally, the sale of the Tampa operations, depending on terms, is anticipated to improve our regulatory capital ratios further from our existing well capitalized levels. At June 30, 2010, BankAtlantic's capital ratios were: -- Total risk-based capital of 12.86%.
-- Tier 1 risk-based capital of 10.87%.
-- Core capital of 7.36%.
"In addition, as indicated below, BankAtlantic's capital ratios have been very stable over the last four years.
Capital Ratios (BankAtlantic) as of:---------------------------------------------------------- 12/2006 12/2007 12/2008 12/2009 3/31/2010 ---------- ---------- ---------- ---------- -----------Core 7.55 % 6.94 % 6.80 % 7.58 % 7.51 %Tier 1 Risk-Based 10.50 % 9.85 % 9.80 % 10.63 % 10.90 %Total Risk-Based 12.08 % 11.63 % 11.63 % 12.56 % 12.86 %
-- "Evaluating our nonperforming assets, including real estate assets and loans, and available alternatives to reduce these assets, which would free up additional capital and internal resources, and reduce related ongoing costs. We believe we are seeing improved credit trends in our residential and consumer portfolios. We have written down our nonperforming real estate portfolio and believe the worst of the impairments and required allowances are behind us. We believe we are beginning to see a stronger economy, more interest and liquidity in the markets for purchasing nonperforming assets, and better pricing.
"Through these activities and a concentrated focus on the generation of core earnings, we believe we will be in a position to return BankAtlantic to profitability as conditions in Florida improve. Importantly, we intend to continue to build strong relationships in our communities, meet the banking needs of South Florida, and continue the extraordinary customer satisfaction that helped BankAtlantic earn the highest ranking by J.D. Power and Associates in customer satisfaction for retail banking in Florida."
Highlights of the BankAtlantic Operating Segment:
BankAtlantic's Chief Executive Officer, Jarett S. Levan, commented, "Despite the prolonged economic downturn, the core business of the bank remains strong. During its 58 years serving Florida, BankAtlantic has experienced and successfully navigated through a number of economic and real estate downturns. BankAtlantic's residential lending practices have never included subprime, option-arm, negative amortization or similar products. We believe that is why its residential loan portfolio has performed better than most standard industry comparisons over the last several years. BankAtlantic's investment portfolio has not included any commercial paper, collateralized debt obligations, structured investment vehicles, Fannie Mae or Freddie Mac equity or debt securities, or investments otherwise considered high-risk. Further, while we experienced and recognized losses in our loan portfolios, we believe we have maintained appropriate loan reserves and have made significant progress in reducing our operating expenses and leverage, while maintaining our net interest margin, since the start of the real estate crisis through the second quarter of 2010. Overall, we believe BankAtlantic, with its strong base of retail and business customers and focus on core strengths, is positioned to emerge from the current economic downturn stronger, leaner, and on track toward profitability.
BankAtlantic Performance:
Deposits and Borrowings -- "Core (1) and total deposits at June 30, 2010 were $2.8 billion and $4.0 billion, respectively, as compared to $2.4 billion and $4.1 billion, respectively, as of June 30, 2009. At June 30, 2010, BankAtlantic's deposit base had the following characteristics:
- "Non-certificate of deposit balances represented approximately 81.2% of total deposits;
- "The average cost of core deposits and total deposits for the second quarter of 2010 was 0.29% and 0.59%, respectively; and
- "Brokered deposit balances represented only 0.55% of assets and 0.64% of total deposits.
-- "BankAtlantic continued to reduce its borrowings, resulting in total borrowings of $171.7 million, or 3.7% of total assets, at June 30, 2010.
-- "BankAtlantic's loan to deposit ratio was 84.4% at June 30, 2010.
(1) Core deposits is a term that we use to refer to Demand, NOW and Savings accounts. A reconciliation of core deposits to total deposits is included in BankAtlantic Bancorp's Second Quarter, 2010 Supplemental Financials available at . To view the financial data, access the "Investor Relations" section and click on the "Quarterly Financials or Supplemental Financials" navigation links.
Results of Operations -- "BankAtlantic's net loss was ($40.1) million for the second quarter of 2010, compared to a net loss of ($24.2) million for the second quarter of 2009.
-- "Pretax core operating earnings (2) for the second quarter of 2010 was $9.1 million compared to $18.7 million for the second quarter of 2009. Included in the second quarter 2010 core earnings is a one-time reversal of previously recorded net interest income of $1.4 million related to the tax certificate portfolio and the impact of a large amount of liquidity in the form of approximately $254 million in average excess invested cash balances yielding 22 basis points. In the future, we anticipate that our core earnings will reflect the reinvestment of these cash balances, realization of expense savings associated with the recent reduction in force and ongoing efficiency efforts, and improvements associated with the sale of the Tampa operations. The decline in the second quarter 2010 core earnings from the 2009 comparative quarter was largely due to lower net interest income primarily related to lower asset balances, an increase in low-yielding excess cash balances and non-earning assets, the interest reversal discussed above; lower non-interest income due to lower securities gains and reduced non-sufficient funds income due to changes in customer behavior; further, core non-interest expenses were flat year-over-year. Loan loss and tax certificate provisions, debt redemption costs, FDIC special assessment, loss on real estate sold and impairment, restructuring and exit activity expenses, which are not included in pre-tax core operating earnings, were ($48.9) million for the second quarter of 2010, and ($42.9) million for the second quarter of 2009.
(2) Pre-tax core operating earnings is a non-GAAP measure that we use to refer to pre-tax earnings before provision for loan losses, tax certificate provisions, debt redemption costs, FDIC special assessments and impairment, gains/losses on sales of real estate, restructuring and exit activities. A reconciliation of loss from bank operations before income taxes to pre-tax core operating earnings is included in BankAtlantic Bancorp's Second Quarter, 2010 Supplemental Financials available at . To view the financial data, access the "Investor Relations" section and click on the "Quarterly Financials or Supplemental Financials" navigation links.
Net Interest Margin -- "Net interest income for the second quarter of 2010 was $37.0 million compared to $40.1 million for the second quarter of 2009, with improvements in net interest margin offset by decreases in earning assets, increases in lower-yielding investments and increases in nonperforming assets.
-- "Net interest margin during the second quarter of 2010 was 3.49%, a 25 basis point improvement from 3.24% during the second quarter of 2009.
-- "Net interest spread during the second quarter of 2010 was 3.30%, improved by 40 basis points from 2.90% during the second quarter of 2009.
-- "Average balance sheet activity impacting net interest income included: -- "Earning assets declined by $812 million since June 30, 2009.
-- "The second quarter 2010 average balance sheet included $254 million in average invested excess cash earning an average yield of 22 basis points. This compares to $25 million in average invested cash during the second quarter 2009, earning an average yield of approximately 25 basis points. This increase in invested cash balances combined with the one-time reversal of $1.4 million in tax certificate interest accrual served to negatively impact the yield on Investments for the second quarter from 5.17% to 2.12%.
-- "The second quarter 2010 average balance sheet included $304 million in average non-interest earning assets, an increase of $4.6 million from the second quarter 2009 average balances.
Non-interest income -- "Total non-interest income for the second quarter of 2010 was $26.3 million, down from $32.8 million for the second quarter of 2009, due primarily to $1.8 million of lower securities gains, and $3.8 million in lower deposit service charges due to declines in customer non-sufficient funds activity.
Non-interest expense -- "Total non-interest expenses were $59.5 million in the second quarter of 2010, compared to $61.1 million in the second quarter of 2009.
-- "Core expenses (3) were $54.2 million in the second quarter of 2010, flat when compared to $54.1 million in the second quarter of 2009. Core expenses in the second quarter 2010 as compared to the second quarter 2009 included lower expenses of $0.7 million in employee compensation and benefits, $1.1 million in occupancy and equipment and $0.5 million in check losses (associated with the declines in non-sufficient funds income); these expense reductions were offset by a $1.9 million increase in professional fees primarily related to litigation costs and a $0.3 million increase in advertising and business promotion.
"Expenses not included in core expenses consisted of the following:
-- "Impairment, restructuring and exit charges were $2.2 million in the second quarter of 2010, versus $1.8 million in the second quarter of 2009. The charges in the second quarter of 2010 were primarily associated with write-downs of land and leaseholds held-for-sale.
-- "Tax certificate provision of $2.1 million in the second quarter of 2010, versus $1.4 million in the second quarter of 2009, primarily associated with increased provisions in certain out-of-state markets.
-- "Loss on sale of real estate of $0.9 million in the second quarter of 2010, versus $0.1 million gain in the second quarter of 2009.
-- "Costs associated with debt redemption of $53,000 for the second quarter of 2010, versus $1.4 million in the second quarter of 2009. These costs were associated with the prepayment of certain borrowings as part of our balance sheet de-leveraging efforts throughout the past year.
(3) Core expense is a non-GAAP measure that we use to refer to total non-interest expenses excluding tax certificate provisions, debt redemption costs, FDIC special assessments, gains/losses on sales of real estate, impairments, restructuring and exit activities. A reconciliation of total expense to core expense is included in BankAtlantic Bancorp's Second Quarter, 2010 Supplemental Financials available at . To view the financial data, access the "Investor Relations" section and click on the "Quarterly Financials or Supplemental Financials" navigation links.
Credit:
-- "The provision for loan losses in the second quarter of 2010 was $43.6 million compared to $32.0 million in the first quarter of 2010, and $36.0 million in the second quarter of 2009. The increased provision in the second quarter of 2010 as compared to the first quarter of 2010 reflects increased commercial real estate non-accrual loans, and a greater number of commercial real estate loans for which we are relying on collateral values for impairment valuation. These factors offset the positive provision impacts of lower net charge-offs and a significant decline in early stage delinquencies (delinquencies excluding non-accrual loans at June 30, 2010 declined by over 50% as compared to levels at March 31, 2010).
-- "BankAtlantic's allowance for loan losses was $180.6 million at June 30, 2010. The allowance coverage to total loans increased to 5.09% at June 30, 2010, compared to 4.64% at March 31, 2010 and 3.79% at June 30, 2009.
-- "The provision for loan losses in the second quarter of 2010 of $43.6 million largely related to our Commercial Real Estate ($26.5 million provision) and Consumer ($12.7 million provision) loan portfolios, as those portfolios together represented approximately 80% of the quarter's net charge-offs.
-- "Net charge-offs were $32.5 million in the second quarter of 2010, compared to net charge-offs of $36.1 million in the first quarter of 2010, and net charge-offs of $25.8 million in the second quarter of 2009. -- "Second quarter 2010 net charge-offs included $14.1 million in the Commercial Real Estate loan portfolio, $11.6 million in the Consumer Loan portfolio, $4.8 million in the Residential Real Estate loan portfolio and $2.1 million in the Small Business loan portfolio.
-- "Total non-accrual loans were $362.1 million at June 30, 2010, reflecting an increase of $60.8 million from $301.4 million at March 31, 2010, and an increase of $66.7 million from June 30, 2009. The increase in non-accrual loans during the second quarter of 2010 was largely due to net increases in non-accrual loans of $61.1 million in Commercial Real Estate, offset by a net decline of $4.4 million in Residential non-accrual loans. Of the second quarter 2010 net increase in Commercial Real Estate non-accrual loans, borrowers under loans comprising approximately $24.8 million in new non-accrual loan balances were current and paying under terms of their loan agreements.
-- "Total nonperforming assets were $410.5 million at June 30, 2010, an increase of $66.8 million from $343.7 million at March 31, 2010, and an increase of $81.8 million from June 30, 2009.
"Other credit information for BankAtlantic's three largest loan portfolios is further detailed below.
Commercial Real Estate Loans -- "At June 30, 2010, BankAtlantic's Commercial Real Estate loan portfolio included the following:
-- "Commercial residential land acquisition, development and construction loans consisting of: -- Builder land bank loans: 5 loans aggregating $17.5 million, all of which were on non-accrual at June 30, 2010. Charge-offs of $38.6 million have been taken on these non-accrual loans, and $4.5 million in specific reserves are currently maintained against these loans.
-- Land acquisition and development loans: 23 loans aggregating $145.7 million, including 9 loans aggregating $62.1 million on non-accrual at June 30, 2010. Charge-offs of $18.5 million have been taken on these non-accrual loans, and $12.3 million in specific reserves are currently maintained against these loans.
-- Land acquisition, development and construction loans: 4 loans aggregating $6.1 million, with no loans on non-accrual at June 30, 2010.
-- "Commercial land loans: 30 loans aggregating $91.8 million, including 8 loans aggregating $52.3 million on non-accrual at June 30, 2010. Charge-offs of $19.5 million have been taken on these non-accrual loans, and $6.2 million in specific reserves are currently maintained against these loans.
-- "All other Commercial Real Estate loans: Portfolio of $789.6 million, including 25 loans aggregating $98.1 million on non-accrual at June 30, 2010. Charge-offs of $19.5 million have been taken on these non-accrual loans, and $31.5 million in specific reserves are currently maintained against these loans.
Residential Real Estate Loans -- "Our Residential Real Estate loan portfolio was $1.4 billion at June 30, 2010, representing 39.5% of the Bank's total loans. The purchased residential loan portfolio (representing 95.0% of the total residential loan portfolio) consists of approximately 4,800 first mortgage loans secured by properties throughout the United States.
-- "Net charge-offs for the second quarter of 2010 were $4.8 million, compared to net charge-offs of $4.1 million in the first quarter of 2010 and $3.6 million in the second quarter of 2009.
-- "Delinquencies, excluding non-accrual loans, at June 30, 2010 were $18.5 million (a 31% decline from the March 31, 2010 level), which represented 1.32% of the portfolio at June 30, 2010, compared to 1.83% of the portfolio at March 31, 2010 and 1.39% of the portfolio at June 30, 2009.
-- "Residential non-accrual loans at June 30, 2010 were $83.9 million, down from $88.3 million at March 31, 2010, and up from $64.7 million at June 30, 2009.
-- "The allowance coverage for Residential Real Estate loans was 1.62% at June 30, 2010 as compared to 2.01% at March 31, 2010 and 1.28% at June 30, 2009. The reduction in the current quarter's allowance coverage was driven by improved non-accrual collateral values and other improved credit quality factors including delinquency and loss trends.
Consumer Loans - "Our Consumer Loan portfolio had an outstanding balance of $644.9 million at June 30, 2010. Home equity loans represent 96% of the Consumer Loan portfolio. All of our home equity loans were originated by us in our local markets with central underwriting. BankAtlantic does not have a credit card portfolio.
-- "Net charge-offs in the second quarter of 2010 were $11.6 million, compared to $10.6 million in the first quarter of 2010 and $9.0 million in the second quarter of 2009.
-- "Delinquencies, excluding non-accrual loans, decreased to $13.2 million, or 2.04% of the portfolio, at June 30, 2010, compared to $14.9 million, or 2.23% of the portfolio, at March 31, 2010.
-- "Consumer non-accrual loans at June 30, 2010 were $13.8 million, down slightly from $14.4 million at March 31, 2010, and up from $11.8 million at June 30, 2009.
-- "The allowance coverage for Consumer loans at June 30, 2010 was 6.37% of the portfolio, compared to 6.00% at March 31, 2010 and 5.86% of the portfolio at June 30, 2009."
BankAtlantic Bancorp (Parent Company level):
Alan B. Levan further commented, "BankAtlantic Bancorp recently announced the completion of its previously announced Rights Offering on July 20, 2010, with approximately $20.0 million of proceeds received in connection with the exercise of rights by its shareholders. We are quite pleased with the participation of our shareholders, having purchased approximately 80% of the offer. Additionally, during the second quarter of 2010, BankAtlantic Bancorp contributed capital of $20 million to BankAtlantic.
"BankAtlantic Bancorp's net loss at the parent only level was ($11.4) million for the second quarter of 2010, compared to a net loss of ($14.2) million for the second quarter of 2009. The net loss in the second quarter of 2010 included a net provision for loan losses of $4.9 million compared to $7.5 million in the second quarter of 2009. Additionally, the second quarter of 2010 results included $0.6 million in losses related to the sale of real estate owned, and $0.7 million of real estate owned impairment.
"As announced in the first quarter of 2009, we continue to defer the regularly scheduled interest payments on the outstanding junior subordinated debentures relating to all of our TruPS, which is permitted under the terms of the securities for up to another 14 consecutive quarterly periods. Additionally, our previously disclosed tender for certain of these debentures remains outstanding through September 30, 2010.
Asset Workout Subsidiary -- "During the first quarter of 2008, Bancorp formed a wholly-owned asset workout subsidiary and purchased certain non-accrual loans from BankAtlantic. These assets are no longer held by BankAtlantic, and any gain or loss associated with these assets has no impact on BankAtlantic's operations or capital, but will be included in Bancorp's consolidated results. These assets, as with all other assets and liabilities of Bancorp, should not be combined with those of BankAtlantic when evaluating and comparing metrics for BankAtlantic as the insured financial institution.
"The loans held by the workout subsidiary totaled $27.3 million with specific loan reserves of $7.2 million at June 30, 2010.
"The composition of the non-accrual loans held by the Company's asset workout subsidiary at June 30, 2010 was as follows:
-- "Builder land bank loans: One loan totaling $6.0 million. Charge-offs of $13.9 million have been taken on this non-accrual loan, and $0.6 million in specific reserves are currently maintained against this loan.
-- "Land acquisition and development loans: 3 loans aggregating $4.6 million. Charge-offs of $7.2 million have been taken on these non-accrual loans, and $0.9 million in specific reserves are currently maintained against these loans.
-- "Land acquisition, development and construction loans: 5 loans aggregating $8.2 million. Charge-offs of $8.0 million have been taken on these non-accrual loans, and $5.5 million in specific reserves are currently maintained against these loans.
-- "Commercial business loans: One loan aggregating $5.5 million, with $0.3 million in specific reserves currently maintained against this loan. This loan has not incurred prior charge-offs."
Additional detailed financial data for BankAtlantic (bank only), the Parent- BankAtlantic Bancorp, and consolidated BankAtlantic Bancorp are available at .
To view the financial data, access the "Investor Relations" section and click on the "Quarterly Financials or Supplemental Financials" navigation links. Additionally, BankAtlantic's financial information is provided quarterly to the OTS through Thrift Financial Reports, available to the public through the OTS and FDIC websites.
Additionally, copies of BankAtlantic Bancorp's second quarter 2010 financial results press release and financial data are available upon request via fax, email, or postal service mail. To request a copy, contact BankAtlantic Bancorp's Investor Relations department using the contact information listed below.
BankAtlantic Bancorp plans to host an investor and media teleconference call and webcast on Wednesday, August 4th at 11:00 a.m. (Eastern Time).
Teleconference Call Information:
To access the teleconference call in the U.S. and Canada, the toll free number to call is [phone]. International calls may be placed to [phone]. Domestic and international callers may reference PIN number 88733341.
A replay of the conference call will be available beginning two hours after the call's completion through 2:30 p.m. Eastern Time, Friday, September 3, 2010. To access the replay option in the U.S. and Canada, the toll free number to call is 1-800-642-1687. International calls for the replay may be placed at 706-645-9291. The replay digital PIN number for both domestic and international calls is 88733341.
Webcast Information:
Alternatively, individuals may listen to the live and/or archived webcast of the teleconference call. To listen to the webcast, visit , access the "Investor Relations" section and click on the "Webcast" navigation link, or go directly to . The archived replay of the teleconference call will be available through 2:30 p.m. Eastern Time, September 3, 2010.
About BankAtlantic Bancorp:
BankAtlantic Bancorp (BBX) is a bank holding company and the parent company of BankAtlantic.
About BankAtlantic:
BankAtlantic, Florida's Most Convenient Bank, is one of the largest financial institutions headquartered in Florida. Via its broad network of community branches, online banking division - BankAtlantic.com, and conveniently located ATMs, BankAtlantic provides a full line of personal, small business and commercial banking products and services. BankAtlantic is open 7 days a week with extended weekday hours, Free Online Banking & Bill Pay, a 7-Day Customer Service Center and Change Exchange coin counters.
For further information, please visit our websites:
To receive future BankAtlantic Bancorp news releases or announcements directly via Email, please click on the Email Broadcast Sign Up button on our website:
Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of BankAtlantic Bancorp, Inc. ("the Company") and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company's control. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products and services, including the impact of the changing regulatory environment, a continued or deepening recession, continued decreases in real estate values, and increased unemployment or sustained high unemployment rates on our business generally, our regulatory capital ratios, the ability of our borrowers to service their obligations and of our customers to maintain account balances and the value of collateral securing our loans; credit risks and loan losses, and the related sufficiency of the allowance for loan losses, including the impact on the credit quality of our loans (including those held in the asset workout subsidiary of the Company) of a sustained downturn in the economy and in the real estate market and other changes in the real estate markets in our trade area, and where our collateral is located; the quality of our real estate based loans including our residential land acquisition and development loans (including Builder land bank loans, Land acquisition and development loans and Land acquisition, development and construction loans) as well as Commercial land loans, other Commercial real estate loans, Residential loans and Consumer loans, and conditions specifically in those market sectors; the quality of our Commercial business loans and conditions specifically in that market sector; the risks of additional charge-offs, impairments and required increases in our allowance for loan losses especially if the economy and real estate markets in Florida do not improve; changes in interest rates and the effects of, and changes in, trade, monetary and fiscal policies and laws including their impact on the bank's net interest margin; adverse conditions in the stock market, the public debt market and other financial and credit markets and the impact of such conditions on our activities, the value of our assets and on the ability of our borrowers to service their debt obligations and maintain account balances; BankAtlantic's initiatives or strategies not resulting in the growth of core deposits, or profitability; we may not be able to sell our Tampa operations on acceptable terms or at all; our expense reduction initiatives may not be successful and additional cost savings may not be achieved; we may seek to raise additional capital and such capital may be highly dilutive to BankAtlantic Bancorp's shareholders or may not be available; and the risks associated with the impact of periodic valuation testing of goodwill, deferred tax assets and other assets. Past performance, actual or estimated new account openings and balance growth may not be indicative of future results. In addition to the risks and factors identified above, reference is also made to other risks and factors detailed in reports filed by the Company with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2009. The Company cautions that the foregoing factors are not exclusive. In addition to this, BankAtlantic received the highest numerical score among retail banks in Florida in the proprietary J.D. Power and Associates 2010 Retail Banking Satisfaction Study(SM). Study based on 47,673 total responses measuring 9 providers in Florida and measures opinions of consumers with their primary banking provider. Proprietary study results are based on experiences and perceptions of consumers surveyed in January 2010. Your experiences may vary. Visit jdpower.com.
SOURCE: BankAtlantic Bancorp, Inc.
BankAtlantic Bancorp, Inc. Leo Hinkley, 954-940-5300 Investor and Media Relations Officer [e-mail] or BankAtlantic Media Relations: Sharon Lyn, 954-940-6383 Vice President Fax: [phone] [e-mail]
Copyright Business Wire 2010