Bankatlantic Bancorp Inc. has a market cap of $51.27 million; its shares were traded at around $0.84 with and P/S ratio of 0.15. BBX is in the portfolios of Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
Highlight of Business Operations:The decrease in BankAtlantics net loss during the 2010 third quarter compared to the same 2009 quarter primarily resulted from a $29.2 million decrease in the provision for loan losses partially offset by $4.6 million of lower revenues from service charges on deposits, $5.3 million of lower gains on securities activities, net, a $2.4 million decline in net
interest income and $0.7 million of higher non-interest expenses. The substantial decrease in the provision for loan losses primarily related to a significant reduction in charge-offs in all of our loan product types as we believe that real estate value declines have generally slowed. The lower revenues from service charges reflect a decline in the total number of accounts which incurred overdraft fees and a decrease in the frequency of overdrafts per deposit account. We believe that the decline in the number of accounts incurring overdraft fees is the result of both our focus on seeking to attract customers who maintain deposit accounts with higher balances, the adoption of new Federal Reserve overdraft rules and the result of a change in customer behavior. We currently expect this decline in overdraft fees to continue. During the three months ended September 30, 2009, BankAtlantic sold agency securities for a $4.8 million gain. No agency securities were sold during the three months ended September 30, 2010. The decline in BankAtlantics net interest income primarily resulted from lower earning asset balances, higher non-performing asset balances, and an increase in liquidity resulting in additional cash balances invested in low yielding investments. The decline in earning assets was the result of lower loan originations and purchases, reduced acquisitions of tax certificates and sales of agency securities since the second quarter of 2009. The increases in BankAtlantics non-interest expenses primarily resulted from $4.5 million of impairments on assets transferred to held-for-sale in connection with the possible sale of our Tampa operations, $2.0 million of employee severance associated with a July 2010 workforce reduction, a $1.1 million increase in lease termination liability and a $2.2 million increase in professional fees. The above increases in non-interest expenses were partially offset by lower compensation and occupancy expenses associated with efforts to increase operating efficiencies and $5.4 million of costs associated with debt redemptions in 2009 with no costs associated with debt redemptions in 2010.
The decrease in BankAtlantics net loss during the 2010 period compared to the same 2009 period primarily resulted from a $33.0 million reduction in the provision for loan losses, and a $19.8 million reduction in non-interest expenses, partially offset by a decline in net interest income of $7.8 million, $12.0 million of lower revenues from service charges on deposits and a $8.3 million decline in gains from securities activities, net. The improvement in non-interest expense reflects a $9.2 million goodwill impairment charge during the 2009 period with no goodwill impairment charges during the 2010 period. Additionally, the improvement in non-interest expenses since the 2009 period reflects reduced operating expenses associated with operating expense initiatives, which included a $5.9 million reduction in employee compensation and benefits expense as a result of a smaller workforce.
The decrease in the Parent Companys net loss primarily resulted from the items discussed above for the nine months ended September 30, 2010 compared to the same 2009 period, as the provision for loan losses declined $14.6 million in the nine month period ended September 30, 2010 compared to the same 2009 period. During the nine months ended September 30, 2010, the Parent Company sold certain real estate owned property for a $0.6 million loss and recorded $0.8 million of write-downs on real estate owned due to declining property values subsequent to foreclosure.
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