BANKATLANTIC BANCORP FORM 8-K
 

SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) of the
SECURITIES EXCHANGE ACT OF 1934

Date of Report

December 2, 2003

(Date of earliest event reported)

BankAtlantic Bancorp, Inc.

(Exact name of registrant as specified in its Charter)
         
Florida   34-027228   65-0507804
 
 
(State of other jurisdiction or
incorporation or organization)		   (Commission File Number)   (IRS Employer Identification No.)
     
1750 East Sunrise Blvd.
Ft. Lauderdale, Florida		   33304
 
(Address of principal executive offices)   (Zip Code)

(954) 760-5000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Item 5. Other Events

     On December 2, 2003, BankAtlantic Bancorp’s Board of Directors authorized the spin-off of Levitt Corporation (“Levitt”). BankAtlantic Bancorp (“the Company”) has received a private letter ruling from the Internal Revenue Service that, subject to the terms and conditions of the private letter ruling, the transaction will be tax free to holders of the Company’s stock. Upon the consummation of the spin-off, Levitt will no longer be a wholly owned subsidiary of the Company but will be held by the shareholders of the Company on the same pro rata basis as they currently hold the Company’s shares.

     In connection with the spin-off, the Company will convert a currently outstanding $30.0 million demand note owed by Levitt to the Company to a five year term note with interest only payable monthly initially at the prime rate and thereafter at the prime rate plus increments of an additional .25% every six months. The Company will also transfer its 4.9% ownership interest in Bluegreen Corporation to Levitt in exchange for a $5.5 million note and 1.5 shares of Levitt common stock. These additional shares of Levitt will be distributed as part of the spin-off transaction. This note will be due in one year, with principal and interest payable monthly. Additionally, prior to the spin-off, it is anticipated that Levitt will declare an $8.0 million dividend to the Company payable in the form of a five year note with the same payment terms as the $30.0 million note described above.

Item 7. Financial Statements and Exhibits

(b) Pro Forma Financial information

PRO FORMA FINANCIAL INFORMATION

     The following pro forma financial information was derived by subtracting Levitt’s historical financial information from our reported historical financial information and making adjustments to the combined information to reflect transactions that are anticipated to occur prior to or concurrently with the spin-off of Levitt.

     The pro forma consolidated statement of financial condition assumes the spin-off occurred on September 30, 2003. The pro forma consolidated statement of operations assumes the spin-off occurred at the beginning of the earliest period presented. The pro forma information should be read along with our historical financial statements.

2

 

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

       
    BANKATLANTIC BANCORP, INC.
     
    By: /s/ James A. White
   
    James A. White
Executive Vice President and Chief Financial Officer

3

 

     The following pro forma information is presented for illustrative purposes only and is not necessarily indicative of the financial condition or results of operations which would actually have been recorded if the Levitt spin-off had occurred during the periods presented.

PRO FORMA FINANCIAL INFORMATION
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
PRO FORMA STATEMENTS OF FINANCIAL CONDITION
(Unaudited)

                                           
      As of September 30, 2003
     
(In thousands)   Historical   Levitt (a)   Adjustments           Pro Forma
   
 
 
         
ASSETS
                                        
Cash and short term investments
   $ 143,308       39,346       23,221  (b)             127,183  
Securities, investments and FHLB stock
     654,475       —       —               654,475  
Loans
     3,739,638       5,163       90,641  (c)             3,825,116  
Real estate held for development and sale
     256,920       234,854       —               22,066  
Investment in unconsolidated subsidiaries
     102,590       67,444       (27,285 )(d)             7,861  
Intangible assets, net
     89,098       —       —               89,098  
Deferred tax asset, net
     33,684       2,454       (295 )(e)             30,935  
Other assets
     177,347       7,262       —               170,085  
 
    
     
     
             
 
 
Total assets
   $ 5,197,060       356,523       86,282               4,926,819  
 
    
     
     
             
 
 
                                        
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                        
Liabilities:
                                        
Deposits
     2,982,203       —       —               2,982,203  
Advances from FHLB
     956,820       —       —               956,820  
Securities sold under agreements to repurchase
     143,230       —       23,221  (b)             166,451  
Subordinated debentures, notes and bonds payable
     146,696       162,585       53,242  (c)             37,353  
Junior subordinated debentures
     263,218       —       —               263,218  
Other liabilities
     191,224       68,415       —               122,809  
 
    
     
     
             
 
 
Total liabilities
     4,683,391       231,000       76,463               4,528,854  
 
Total stockholders’ equity
     513,669       125,523       9,819  (f)             397,965  
 
    
     
     
             
 
 
Total liabilities and stockholders’ equity
   $ 5,197,060       356,523       86,282               4,926,819  
 
    
     
     
             
 

Pro forma adjustments:

(a)   To eliminate Levitt’s assets and liabilities included in the Company’s statement of financial condition as of September 30, 2003.
 
(b)   To reflect Levitt’s repurchase agreements with BankAtlantic that were eliminated in the historical consolidated amounts.
 
(c)   To reflect $53.2 million of loans to Levitt and $23.9 million of loans to Levitt’s joint ventures as well as an $8.0 million dividend from Levitt issued in the form of a note to the Company prior to the transaction and a $5.5 million note issued by Levitt as partial consideration for the transfer of the Company’s investment in Bluegreen Corporation’s common stock to Levitt.
 
(d)   To reclassify $23.9 million of loans to Levitt’s joint ventures from investment in unconsolidated subsidiaries to loans, to transfer the Company’s $4.7 million investment in Bluegreen Corporation to Levitt in exchange for a $5.5 million note and 1.5 shares of Levitt’s common stock, and to eliminate $1.3 million of deferred interest income associated with loans to Levitt.
 
(e)   Reflects a deferred tax liability associated with the transfer of the Bluegreen common stock to Levitt.
 
(f)   To reflect an $8.0 million dividend from Levitt to the Company, the transfer of the Bluegreen common stock to Levitt and the related tax liability, and the elimination of deferred income associated with Levitt’s real estate inventory.

4

 

PRO FORMA FINANCIAL INFORMATION
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
PRO FORMA STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(Unaudited)

                                         
(In thousands, except share and per share data)   Historical   Levitt (a)   Adjustments           Pro forma
   
 
 
         
Net interest income
   $ 111,773       419       1,756  (b)             113,110  
Provision for loan losses
     1,264       —       —               1,264  
 
    
     
     
             
 
Net interest income after provision for loan losses
     110,509       419       1,756               111,846  
 
    
     
     
             
 
 
                                        
Non-interest income:
                                        
Service charges and other banking fees
     43,702       —       —               43,702  
Investment banking Income
     152,222       —       —               152,222  
Income from real estate operations
     56,165       49,771       (1,104 )(c)             5,290  
Income from unconsolidated subsidiaries
     6,525       5,057       (1,162 )(d)             306  
Other
     8,779       1,805       —               6,974  
 
    
     
     
             
 
Total non-interest income
     267,393       56,633       (2,266 )             208,494  
 
    
     
     
             
 
 
                                        
Non-interest expense:
                                        
Employee compensation and benefits
     183,688       13,543       —               170,145  
Other
     116,705       15,297       —               101,408  
 
    
     
     
             
 
Total non-interest expense
     300,393       28,840       —               271,553  
 
    
     
     
             
 
Income from continuing operations before income taxes
     77,509       28,212       (510 )             48,787  
Provision for income taxes
     28,577       10,891       (197 )             17,489  
 
    
     
     
             
 
Income from continuing operations
   $ 48,932       17,321       (313 )             31,298  
 
    
     
     
             
 
Average basic shares outstanding
     58,381,370                               58,381,370  
 
    
                             
 
Average diluted shares outstanding
     62,475,859                               62,475,859  
 
    
                             
 
Basic earnings per share
   $ 0.84                               0.54  
 
    
                             
 
Diluted earnings per share
   $ 0.78                               0.50  
 
    
                             
 

Pro forma adjustments:

(a)   To eliminate Levitt’s earnings for the nine months ended September 30, 2003.
 
(b)   To recognize $971,000 of inter-company interest income that was eliminated in the historical financial information as a result of the consolidation of Levitt’s real estate developments and to reflect $785,000 of additional interest income associated with $13.5 million of indebtedness from Levitt originated in connection with the spin-off transaction and the conversion of the $30 million demand note to a term note bearing interest at a higher prime rate.
 
(c)   To eliminate the deferred interest income recognized upon the sale of Levitt’s real estate inventory.
 
(d)   To eliminate earnings from Bluegreen Corporation in connection with the Company transferring its interest in Bluegreen common stock to Levitt.

5

 

'

PRO FORMA FINANCIAL INFORMATION
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
PRO FORMA STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(Unaudited)

                                           
(In thousands, except share and per share data)   Historical   Levitt (a)   Other           Pro forma
   
 
 
         
Net interest income
   $ 116,985       636       1,806  (b)             118,155  
Provision for loan losses
     10,786       —       —               10,786  
 
    
     
     
             
 
Net interest income after provision for loan losses
     106,199       636       1,806               107,369  
 
    
     
     
             
 
 
                                        
Non-interest income:
                                        
Service charges and other banking fees
     17,234       —       —               17,234  
Investment banking income
     89,270       —       —               89,270  
Income from real estate operations
     31,128       30,065       (1,063 )(c)             —  
Income from unconsolidated subsidiaries
     5,334       3,969       (715 )(d)             650  
Other
     6,488       990       —               5,498  
 
    
     
     
             
 
Total non-interest income
     149,454       35,024       (1,778 )             112,652  
 
    
     
     
             
 
 
                                        
Non-interest expense:
                                        
Employee compensation and benefits
     129,642       9,492       —               120,150  
Other
     95,105       11,239       —               83,866  
 
    
     
     
             
 
Total non-interest expense
     224,747       20,731       —               204,016  
 
    
     
     
             
 
Income from continuing operations before income taxes
     30,906       14,929       28               16,005  
Provision for income taxes
     8,828       3,675       10               5,163  
 
    
     
     
             
 
Income from continuing operations
   $ 22,078       11,254       18               10,842  
 
    
     
     
             
 
Average basic shares outstanding
     57,967,925                               57,967,925  
 
    
                             
 
Average diluted shares outstanding
     64,450,194                               60,357,368  
 
    
                             
 
Basic earnings per share
   $ 0.38                               0.19  
 
                                    
 
Diluted earnings per share
   $ 0.36                               0.18  
 
    
                             
 

(a)   To eliminate Levitt’s earnings for the nine months ended September 30, 2002.
 
(b)   To recognize $1.1 million of inter-company interest income that was eliminated in the historical financial information as a result of the consolidation of Levitt’s real estate developments and to reflect $703,000 of additional interest income associated with $13.5 million of indebtedness from Levitt originated in connection with the spin-off transaction and the conversion of the $30 million demand note to a term note bearing interest at a higher prime rate.
 
(c)   To eliminate deferred interest income recognized upon the sale of Levitt’s real estate inventory.
 
(d)   To eliminate earnings from Bluegreen Corporation in connection with the Company transferring its interest in Bluegreen common stock to Levitt.

6

 

PRO FORMA FINANCIAL INFORMATION
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2002
(Unaudited)

                                         
(In thousands, except share and per share data)   Historical   Levitt (a)   Adjustments           Pro forma
   
 
 
         
Net interest income
   $ 153,621       872       2,539  (b)             155,288  
Provision for loan losses
     14,077       —       —               14,077  
 
    
     
     
             
 
Net interest income after provision for loan losses
     139,544       872       2,539               141,211  
 
    
     
     
             
 
 
                                        
Non-interest income:
                                        
Service charges and other banking fees
     40,566       —       —               40,566  
Investment banking Income
     130,738       —       —               130,738  
Securities activities, net
     (10,223 )                             (10,223 )
Income from real estate operations
     49,400       47,672       (1,728 )(c)             —  
Income from unconsolidated subsidiaries
     7,492       5,419       (780 )(d)             1,293  
Other
     11,345       1,872       —               9,473  
 
    
     
     
             
 
Total non-interest income
     229,318       54,963       (2,508 )             171,847  
 
    
     
     
             
 
 
                                        
Non-interest expense:
                                        
Employee compensation and benefits
     180,962       13,983       —               166,979  
Other
     133,170       16,086       —               117,084  
 
    
     
     
             
 
Total non-interest expense
     314,132       30,069       —               284,063  
 
    
     
     
             
 
Income from continuing operations before income taxes
     54,730       25,766       31               28,995  
Provision for income taxes
     15,573       6,254       12               9,331  
 
    
     
     
             
 
Income from continuing operations
   $ 39,157       19,512       19               19,664  
 
    
     
     
             
 
Average basic shares outstanding
     57,997,556                               57,997,556  
 
    
                             
 
Average diluted shares outstanding
     64,400,725                               60,307,951  
 
    
                             
 
Basic earnings per share
   $ 0.66                               0.34  
 
    
                             
 
Diluted earnings per share
   $ 0.63                               0.33  
 
    
                             
 

Pro forma adjustments

(a)   To eliminate Levitt’s earnings for the year ended December 31, 2002.
 
(b)   To recognize $1.7 million of inter-company interest income which was eliminated in the historical financial information as a result of the consolidation of Levitt’s real estate developments and to reflect $870,000 of additional interest income associated with $13.5 million of indebtedness from Levitt originated in connection with the spin-off transaction and the conversion of the $30 million demand note to a term note bearing interest at a higher prime rate.
 
(c)   To eliminate deferred interest income recognized upon the sale of Levitt’s real estate inventory.
 
(d)   To eliminate earnings from Bluegreen Corporation in connection with the Company transferring its interest in Bluegreen common stock to Levitt.

7

 

PRO FORMA FINANCIAL INFORMATION
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2001
(Unaudited)

                                         
(In thousands, except share and per share data)   Historical   Levitt (a)   Other           Pro forma
   
 
 
         
Net interest income
   $ 138,019       1,809       1,933  (b)             138,143  
Provision for loan losses
     16,905       —       —               16,905  
 
    
     
     
             
 
Net interest income after provision for loan losses
     121,114       1,809       1,933               121,238  
 
    
     
     
             
 
 
                                        
Non-interest income:
                                        
Service charges and other banking fees
     31,103       —       —               31,103  
Investment banking Income
     43,436       —       —               43,436  
Income from real estate operations
     33,695       31,299       (2,396 )(c)             —  
Income from unconsolidated subsidiaries
     2,888       2,888                       —  
Other
     11,762       1,775                       9,987  
 
    
     
     
             
 
Total non-interest income
     122,884       35,962       (2,396 )             84,526  
 
    
     
     
             
 
 
                                        
Non-interest expense:
                                        
Employee compensation and benefits
     94,450       9,730       —               84,720  
Other
     95,926       16,401       —               79,525  
 
    
     
     
             
 
Total non-interest expense
     190,376       26,131       —               164,245  
 
    
     
     
             
 
Income from continuing operations before income taxes
     53,622       11,640       (463 )             41,519  
Provision for income taxes
     22,600       4,118       (162 )             18,320  
 
    
     
     
             
 
Income from continuing operations
   $ 31,022       7,522       (301 )             23,199  
 
    
     
     
             
 
Average basic shares outstanding
     42,091,961                               42,091,961  
 
    
                             
 
Average diluted shares outstanding
     54,313,104                               54,313,104  
 
    
                             
 
Basic earnings per share
   $ 0.74                               0.55  
 
    
                             
 
Diluted earnings per share
   $ 0.63                               0.49  
 
    
                             
 

(a)   To eliminate Levitt’s earnings for the year ended December 31, 2001.
 
(b)   To recognize $904,000 of inter-company interest income which was eliminated in the historical financial information as a result of the consolidation of Levitt’s real estate developments and to reflect $1.0 million of additional interest income associated with $13.5 million of indebtedness from Levitt originated in connection with the spin-off transaction.
 
(c)   To eliminate deferred interest income recognized upon the sale of Levitt’s real estate inventory.

8

 

PRO FORMA FINANCIAL INFORMATION
BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2000
(Unaudited)

                                           
(In thousands, except share and per share data)   Historical   Levitt (a)   Other           Pro forma
   
 
 
         
Net interest income
   $ 117,879       949       4,307  (b)             121,237  
Provision for loan losses
     29,132       —       —               29,132  
 
    
     
     
             
 
Net interest income after provision for loan losses
     88,747       949       4,307               92,105  
 
    
     
     
             
 
Non-interest income:
                                        
Service charges and other banking fees
     28,691       —       —               28,691  
Investment banking Income
     51,101       —       —               51,101  
Income from real estate operations
     22,076       20,905       (1,171 )(c)             —  
Income from unconsolidated subsidiaries
     1,141       1,141       —               —  
Other
     25,383       5,914       —               19,469  
 
    
     
     
             
 
Total non-interest income
     128,392       27,960       (1,171 )             99,261  
 
    
     
     
             
 
 
                                        
Non-interest expense:
                                        
Employee compensation and benefits
     90,313       6,846       —               83,467  
Other
     86,894       11,900       —               74,994  
 
    
     
     
             
 
Total non-interest expense
     177,207       18,746       —               158,461  
 
    
     
     
             
 
Income from continuing operations before income taxes
     39,932       10,163       3,136               32,905  
Provision for income taxes
     15,887       3,208       1,098               13,777  
 
    
     
     
             
 
Income from continuing operations
   $ 24,045       6,955       2,038               19,128  
 
    
     
     
             
 
Average basic Class A shares outstanding
     31,560,093                               31,560,093  
 
    
                             
 
Average diluted Class A shares outstanding
     47,126,250                               47,126,250  
 
    
                             
 
Basic earnings Class A per share
   $ 0.62                               0.49  
 
    
                             
 
Diluted earnings Class A per share
   $ 0.53                               0.44  
 
    
                             
 

(a)   To eliminate Levitt’s earnings for the year ended December 31, 2003.
 
(b)   To recognize $3.6 million of inter-company interest income which was eliminated in the historical financial information as a result of the consolidation of Levitt’s real estate developments and to reflect $745,000 of additional interest income associated with $8.0 million of indebtedness from Levitt originated in connection with the spin-off transaction.
 
(c)   To eliminate deferred interest income recognized upon the sale of Levitt’s real estate inventory.

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