BANKATLANTIC REPORTS THIRD QUARTER RESULTS
BANKATLANTIC REPORTS THIRD QUARTER RESULTS FORT LAUDERDALE, Fla., Nov. 15 /PRNewswire/ -- BankAtlantic
(NASDAQ-NMS: ASAL) today reported a net loss of $4,404,000, or $1.14 per common share, for the quarter ended Sept. 30, 1991, compared to net income of $148,000, or $0.04 per common share, for the same period in 1990.
For the nine months ended Sept. 30, 1991, BankAtlantic reported a net loss of $5,923,000, or $1.58 per common share (including a $660,000 or $0.16 per share extraordinary item), vs. a net loss of $699,000 or $0.19 per common share, for the comparable period a year earlier. BankAtlantic was in full compliance with all federal regulatory capital requirements at Sept. 30, 1991. BankAtlantic's risk-based capital stood at 7.34 percent of risk-adjusted assets, which exceeds the regulatory requirement of 7.20 percent. Tangible capital at Sept. 30, 1991 was 3.51 percent of adjusted assets, compared to the regulatory requirement of 1.50 percent; core capital was 3.56 percent of adjusted assets, compared to the regulatory requirement of 3.00 percent. The loss for the quarter ended Sept. 30, 1991 was primarily attributable to an increase of approximately $5.5 million in the provision for loan losses to $8.6 million, compared to the $3.1 million provision for loan losses in 1990. The increased provision related to investigations by BankAtlantic of certain home improvement loans in BankAtlantic's consumer loan portfolio that were purchased by BankAtlantic between 1987 and 1990 from several home improvement dealers. Investigations to date indicate that the dealers, and certain home improvement contractors and borrowers engaged in practices intended to defraud BankAtlantic. BankAtlantic has notified its fidelity bond carrier and appropriate regulatory and law enforcement authorities of its findings. BankAtlantic, its bond carrier, and regulatory agencies continue to investigate the circumstances relating to these loans. BankAtlantic believes that any losses sustained as a consequence of such fraudulent practices will be adequately covered by its fidelity bond coverage. However, the bond carrier has not to date acknowledged liability for the coverage. "BankAtlantic is confident that any losses relating to the consumer loans in question are fully covered by the fidelity bond policy and BankAtlantic is aggressively pursuing that position with the bond carrier. Nonetheless, BankAtlantic made the decision to increase its provision for loan losses for the quarter ended Sept. 30, 1991 relating to these loans by approximately an additional $5.2 million," said BankAtlantic Chairman Alan B. Levan. Commenting about current general economic conditions and the outlook for the future, Levan said: "While we are pleased with recent reductions by the Federal Reserve in the federal funds rate, business and individual borrowing continues at an anemic rate that indicates a continued lack of confidence in the economy. With new home construction at its lowest point in 2 1/2 years, and suffering double-digit declines in every part of the country, we cannot realistically expect a strong recovery to occur any time soon. "To help counter these forces BankAtlantic continues to focus on changing its deposit mix from higher rate certificates of deposit to lower rate transaction accounts, which resulted in the nine month average balance of transaction accounts increasing from $504.7 million at Sept. 30, 1990 to $628.2 million at Sept. 30, 1991, while the nine month average balance of time deposits decreased from $858.5 million at Sept. 30, 1990 to $784.8 million at the same date in 1991," Levan said. BankAtlantic also continued measures in the third quarter to reduce expenses associated with its branch office network, including the merger of 12 branches into existing branches. Due to the branch consolidations, BankAtlantic's full time equivalent employees decreased from 745 at June 30, 1991 to 675 at Sept. 30, 1991, and is expected to decline further as the branch consolidation program nears completion by the end of 1991. BankAtlantic, A Federal Savings Bank, has assets of $1.5 billion and operates full-service banking offices in Broward, Palm Beach and Dade counties. BankAtlantic, A Federal Savings Bank (dollars in thousands, except share data) Sept. 30, 1991 Dec. 31, 1990 Total assets $1,493,053 $1,896,587 Loans receivable, net 778,119 964,863 Mortgage-backed securities 426,039 439,509 Deposits 1,317,506 1,455,967 Stockholders' equity $3,856 53,230 Book value per common share 11.17 13.09 Common shares outstanding 4,070,981 4,066,739 Core capital as a percent of adjusted assets 3.56 pct. 2.74 pct. Tangible capital as a percent of adjusted assets 3.51 pct. 2.69 pct. Risk-based capital as a percent of adjusted assets 7.34 pct. 6.97 pct. For the Quarter Ended Sept. 30, 1991 Sept. 30, 1990 Net interest income $ 15,207 $ 13,710 Provision for loan losses 8,623 3,100 Net interest income after provision 6,584 10,610 Non interest income 3,327 3,322 Non interest expenses before write-downs and provision 12,737 13,019 Write-down of real estate owned 568 487 Write-down of dealer reserve 2,428 -- Provision for branch consolidations 869 -- Total non-interest expenses 16,602 13,506 Income (loss) before income taxes (6,691) 426 Provision (benefit) for income taxes (2,287) 278 Net income (loss) (4,404) 148 Net income (loss) per common share (1.14) .04 Average common shares outstanding 4,070,981 4,066,739 For the Nine Months Ended Sept. 30, 1991 Sept. 30, 1990, Net interest income $40,843 $38,184 Provision for loan losses 12,713 6,319 Net interest income after provision 28,130 31,865 Non interest income 9,872 11,092 Non-interest expenses before write-downs and provision 40,764 43,399 Write-down of real estate owned 3,980 634 Write-down of dealer reserve 2,428 -- Provision for branch consolidations 869 -- Total non interest expenses 48,041 44,033 Loss before income taxes (10,039) (1,076) Benefit for income taxes 3,456 377 Loss before extraordinary item (6,583) (699) Extraordiary item 660 -- Net loss (5,923) (699) Net loss per common share (1.58) (.19) Average common shares outstanding 4,069,598 3,756,316 -0- 11/15/91 /CONTACT: Alan B. Levan of BankAtlantic, A Federal Savings Bank, 305-760-5317/ (ASAL) CO: BankAtlantic, A Federal Savings Bank ST: Florida IN: FIN SU: ERN JJ-SS-MR -- FL007 -- 1530 11/15/91 12:13 EST
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|Date:||Nov 15, 1991|
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