UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 25, 2006

BankAtlantic Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Florida		34-027228		65-0507804
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)
2100 West Cypress Creek Road Ft. Lauderdale, Florida				33309
(Address of principal executive offices)				(Zip Code)

Registrant’s telephone number, including area code 954-940-5000

Not Applicable

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))

 

 

Item 2.02. Results of Operations and Financial Condition

     The information in this item (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and 9.01 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act. On January 25, 2006, BankAtlantic Bancorp, Inc. (the Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2005. The press release, and accompanying financial tables are attached hereto as Exhibit 99.1 and are incorporated herein by reference. In addition to financial results determined in accordance with generally accepted accounting principles (“GAAP”), the press release also contains financial information determined by methods other than in accordance with GAAP. The Company’s management uses these non-GAAP measures, which it defines as “operating” measures, in their analysis of the Company’s performance. These “operating” measures adjust GAAP net income to exclude the reserve for fines and penalties related to a compliance matter, impairment charge related to the Company’s former headquarters, costs associated with debt redemptions and a litigation settlement gain. The Company believes that these non-GAAP operating measures supplement our GAAP financial information and provide useful measures of evaluating the Company’s operating results and any related trends that may be affecting the Company’s business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Item 9.01 Financial Statements and Exhibits

     (c) Press Release dated January 25, 2006

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.

Date: January 25, 2006

BankAtlantic Bancorp Reports Earnings

For The Fourth Quarter and Full Year 2005;

Fourth Quarter Includes $10 million Charge for Compliance Matter

FORT LAUDERDALE, Florida – January 25, 2006 — BankAtlantic Bancorp, Inc. (NYSE: BBX), the parent company of BankAtlantic and Ryan Beck & Co., today reported net income was $59.1 million, or $0.92 per diluted share, for the year ended December 31, 2005, compared to $70.8 million, or $1.11 per diluted share, reported in 2004. For the fourth quarter 2005, a net loss of ($1.6) million was recorded, equivalent to ($0.03) per diluted share, compared to earnings of $17.3 million, or $0.27 per diluted share, for the fourth quarter, 2004.

Operating income, which excludes a $10 million charge relating to the compliance matter discussed below and a $2.4 million facilities charge earlier in 2005 was $71.5 million (or $1.12 per diluted share) for the full year, up 12% from operating income in 2004, which excluded items relating to the early redemption of debt and a litigation settlement. Operating income for the fourth quarter, 2005 was down 52% from the corresponding quarter in 2004. A reconciliation of net income and operating income is contained in the attached financial data, and is also available on the Company’s website.

Chairman and Chief Executive Officer Alan B. Levan commented “As we previously have disclosed, deficiencies in our Anti Money-Laundering and Bank Secrecy Act (‘AML- BSA’) compliance were identified in mid-2004. With the assistance of our Audit Committee, we embarked on a complete review of our AML-BSA compliance policies and procedures. We engaged a nationally recognized consulting firm with specific expertise in this area which reviewed the identified deficiencies in our operating systems and procedures and our employee training programs. In connection with their review, which was completed in late 2004, we incurred expenses of approximately $4 million. Following their review and recommendations, we internally created a separate AML-BSA Department which resulted in a staff increase of approximately 30 employees and made significant improvements to our systems, processes, and training programs. The on-going financial impact of those changes and additions was to increase recurring expenses by approximately $3.5 million annually.

“We believe that the Bank is currently in full compliance with all AML-BSA laws and regulations. Notwithstanding our current compliance status, as we have previously reported, many financial institutions have been the subject of proceedings which have resulted in substantial fines and penalties and have been required to enter into cease and desist orders with their primary regulators based on AML-BSA deficiencies. Under these circumstances, we determined that it was appropriate at this time to establish a $10 million reserve with respect to these matters, and we anticipate that we will be required to enter into a cease and desist order under which we agree to maintain satisfactory compliance status.

Accomplishments and highlights include:
BankAtlantic

“BankAtlantic’s ‘Florida’s Most Convenient Bank’ initiative combined with the fourth quarter introduction of our aggressive new marketing and advertising campaigns brought unprecedented growth in new customer accounts. As the result of these initiatives, we opened 67,000 low cost deposit accounts in the fourth quarter, representing an increase of 69% over the same period in 2004, and an all-time high for BankAtlantic. Driving this growth were the results for November and December 2005, when new accounts rose 107% and 90%, respectively, from the same 2004 periods. We believe this strong growth in new account openings is directly attributable to the new advertising and marketing program, which we launched in November. Ending low cost deposit balances increased to an all time high of $2.1 billion, up 15% over 2004, and average low cost deposit balances for 2005 increased 23% over 2004.

“As we discussed in our third quarter, 2005 release, we continue to believe the creation of long-term value lies in sustaining high growth rates in core deposits. Additional marketing outlays of approximately $5 million per quarter were spent in the fourth quarter, 2005, and will continue throughout 2006, which will have an impact on earnings in the short run. We believe this short-term negative impact on earnings will be compensated by above average ‘top line’ (low cost deposit) growth that over the long run is vitally important to our franchise value and achieving superior profitability.

“Earnings within the bank declined in the fourth quarter, principally as the result of the increase in marketing expenses, and an increase in personnel expense (up $3.3 million, or 12%, from the third quarter, 2005). These personnel costs were directly related to longer store hours, the opening of new stores, and personnel necessary to maintain the service levels from increased account volume.

“The tax equivalent net interest margin improved to 4.05% during the fourth quarter, compared with 3.91% in the same period in 2004, and 3.96% in the third quarter of 2005. Year-over-year, the net interest margin improved to 3.95%, up from 3.79% in 2004.

“Total loans were $4.5 billion at year-end. Loans are down $300 million and total earning assets are down approximately $450 million from their midyear peaks in 2005, consistent with our strategy of limiting earning asset growth due to the relative flatness of the current yield curve. The decline in loans is concentrated in residential real estate, the direct result of our decision to delay purchases of mortgages in light of the current yield curve; and in commercial real estate, because of runoff in our high rise condominium portfolio. We remain comfortable with the commercial real estate market in our trade area, and expect the decline in our commercial real estate loan balances to prove temporary. Small business and consumer loans continued to grow, with linked quarter increases of 18% and 15%, respectively.

“Borrowings, principally advances from the Federal Home Loan Bank, are approximately $400 million lower than at year-end 2004, as we utilized the funds associated with the increased levels of low cost deposits to reduce borrowings rather than to fund earning asset growth. We anticipate following this strategy over the course of 2006, reflecting our belief that reduction of leverage, particularly given the yields available in the market today, is the most appropriate use of these funds.

“Credit quality remained strong in the fourth quarter, with total non-performing loans declining to $6.8 million at December 31, 2005 compared to $7.9 million at December 31, 2004 and relatively flat compared to the $6.9 million level at September 30, 2005. The ratio of non-performing loans to total loans declined to 0.15% at December 31, 2005 from 0.17% at December 31, 2004. In 2005, the Bank continued to experience net recoveries — which totaled $606,000 for the fourth quarter and $1.8 million for the year. As a result, negative provisions of $109,000 and $6.6 million were recorded for the quarter and year, respectively. Most

3

significantly, our coverage of non-performing loans remained extremely high, with the ratio of the allowance for loan losses to non-performing loans at 606% at December 31, 2005.

“During 2005 we experienced continued growth throughout the organization. BankAtlantic expanded its ‘branch’ network with the opening of five new stores during the year, including two that were opened during the fourth quarter. One of the new stores is a midnight location, open from 7:30 AM to midnight, seven days a week, bringing the total number of our stores with this unprecedented level of convenience to seven. Additionally, in December BankAtlantic reached the 100,000 online customers milestone for our award-winning Internet banking service. We anticipate surpassing 1,000,000 monthly logins in 2006.

Ryan Beck & Co.

“During the quarter, Ryan Beck’s Private Client Group opened two new Central Pennsylvania offices in Camp Hill and Lebanon, and also relocated its Scarsdale office to White Plains, New York. Over the course of 2005, Ryan Beck added 63 experienced financial consultants to its Private Client Group, with assets under management totaling $2.3 billion and production of $18 million, bringing the total number of financial consultants to 450. Total assets of Ryan Beck’s customers reached a new record of $18.3 billion.

“Ryan Beck & Co. was ranked as the number one mutual to stock conversion advisor (based upon proceeds) by SNL Securities for the fourth consecutive year, and second in SNL Securities’ Bank and Thrift 2005 Capital Offerings rankings.

“Additionally, Ryan Beck continued expansion of its Capital Markets Division with the hiring of 18 new associates during the fourth quarter, covering several industry sectors. Included in this move is the addition of a wholesale mortgage-backed securities desk to deal in origination and trading of mortgage backed securities. Ryan Beck also expanded its Investment Banking Division through the hiring of three senior bankers in its Middle Markets Group. The new associates included David P. Lazar, Managing Director covering a broad range of industries, Robert von Furth, Managing Director covering companies in the consumer sector with a primary focus on retailing and restaurants, and Jay Gaydosh, Managing Director responsible for REIT transactions. This year’s expansion brought Ryan Beck to a year-end level of approximately 1,100 employees, in 42 offices across the nation,” Levan concluded.

Financial Highlights:
Fourth Quarter, 2005 Compared to Fourth Quarter, 2004

BankAtlantic Bancorp — consolidated:

	•		Net loss of $1.6 million vs. net income of $17.3 million.
	•		Operating income was $8.4 million vs. $17.3 million, a decrease of 51%, excluding the charge related to the compliance matter.
	•		Earnings per share of ($0.03) vs. $0.27.
	•		Operating earnings per share of $0.13 vs. $0.27, a decrease of 52%.
	•		Return on average tangible equity was (1.42%).
	•		Operating return on average tangible equity was 7.42%
	•		Book value per share was $8.50.

BankAtlantic:

	•		Business segment operating income was $10.9 million vs. $16.8 million a decrease of 35%.
	•		Operating return on average tangible assets was 0.74%.
	•		Operating return on average tangible equity was 8.79%.
	•		Tax equivalent net interest margin increased to 4.05% vs. 3.91%.
	•		Non-interest income was $25.8 million vs. $23.0 million, an increase of 12%.
	•		Operating non-interest expense grew to $65.8 million vs. $51.7 million, an increase of 27%, due principally to new stores and the previously announced marketing initiatives.

Ryan Beck & Co.:

	•		Business segment operating income was $562,000 vs. $1.2 million, a decrease of 55%.
	•		Return on average tangible equity was 2.26%.
	•		Total operating revenues were $54.2 million vs. $55.9 million.
	•		Principal transactions were $20.9 million vs. $24.9 million.
	•		Investment banking revenue was $4.5 million vs. $3.8 million.
	•		Commission income was $21.9 million vs. $23.1 million.

Year-End 2005 Compared to Year-End 2004

BankAtlantic Bancorp — consolidated:

	•		Net income was $59.1 million vs. $70.8 million.
	•		Operating income was $71.5 million in 2005 vs. $63.6 million in 2004, an increase of 12%, excluding an impairment charge of $3.7 million on our former headquarters building (abandoned during June 2005 quarter), the $10 million reserve for compliance matters, a gain in 2004 of $22.8 million from a litigation settlement and an $11.7 million expense in 2004 resulting from early redemption of debt,
	•		Earnings per share were $0.92 vs. $1.11. Excluding the effects of items discussed above, diluted earnings per share were $1.12 vs. $1.00, an increase of 12%.
	•		Return on average tangible equity was 13.99%.
	•		Operating return on tangible equity was 16.92%.

BankAtlantic:

	•		Business segment operating income was $68.2 million vs. $56.2 million, an increase of 21%.
	•		Operating return on average tangible assets was 1.13%.
	•		Operating return on average tangible equity was 14.50%.
	•		Tax equivalent net interest margin increased to 3.95% vs. 3.79%.
	•		Non-interest income was $100.1 million vs. $85.7 million, an increase of 17%.
	•		Operating non-interest expense grew to $227.4 million vs. $181.9 million, an increase of 25%.

Ryan Beck & Co.:

	•		Business segment operating income was $16.5 million vs. $17.5 million, a decrease of 5%.
	•		Return on average tangible equity was 17.7%.
	•		Total revenue increased to $253.3 million vs. $243.2 million.
	•		Principal transactions were $100.3 million vs. $90.4 million.
	•		Investment banking revenue was $45.5 million vs. $48.2 million.
	•		Commission income was $83.1 million vs. $89.3 million.

- — - — - — - — - — -

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. When used in this press release and in any documents incorporated by reference herein, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify certain of such forward-looking statements. 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; 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 of changes in the commercial real estate market in our trade area; changes in interest rates and the effects of, and changes in, trade, monetary and fiscal policies and laws including their impact on the banks 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 and other growth, marketing or advertising initiatives not resulting in continued growth of low cost deposits or producing results which do justify their costs; the impact of periodic testing of goodwill and other intangible assets for impairment; as well as achieving the benefits of the prepayment of Federal Home Loan Bank advances or other borrowings; and 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. Past performance, actual or estimated new account openings and growth rate may not be indicative of future results. Further, this press release contains forward-looking statements with respect to Ryan Beck & Co., which are subject to a number of risks and uncertainties including but not limited to the risks and uncertainties associated with 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, as well as its revenue mix, the success of new lines of business and growth; and additional risks and uncertainties that are subject to change and may be outside of Ryan Beck’s control. 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. The Company cautions that the foregoing factors are not exclusive.

BankAtlantic Bancorp, Inc. and Subsidiaries
Summary of Selected Financial Data (unaudited)

						For The Three Months Ended																				For the Years Ended
						12/31/2005				9/30/2005				6/30/2005				3/31/2005				12/31/2004				12/31/2005				12/31/2004
Earnings (in thousands):
Net income (loss) (GAAP basis)					$		(1,603	)			16,260				24,537				19,878				17,293				59,072				70,768
Operating net income **		(note 1)			$		8,397				16,260				26,946				19,878				17,293				71,481				63,615
Average Common Shares Outstanding (in thousands):
Basic							60,618				60,555				60,453				60,072				59,827				60,426				59,526
Diluted							62,898				63,193				63,161				63,207				63,156				63,120				63,056
Key Performance Ratios (GAAP basis):
Basic earnings per share					$		(0.03	)			0.27				0.41				0.33				0.29				0.98				1.19
Diluted earnings per share *					$		(0.03	)			0.26				0.38				0.31				0.27				0.92				1.11
Return on average tangible assets		(note 2)			%		(0.10	)			1.01				1.51				1.27				1.19				0.93				1.36
Return on average tangible equity		(note 2)			%		(1.42	)			15.05				23.98				20.20				18.34				13.99				20.01
Key Performance Ratios (Operating basis):
Basic earnings per share					$		0.14				0.27				0.45				0.33				0.29				1.18				1.07
Diluted earnings per share *					$		0.13				0.26				0.42				0.31				0.27				1.12				1.00
Return on average tangible assets		(note 2)			%		0.54				1.01				1.66				1.27				1.19				1.12				1.22
Return on average tangible equity		(note 2)			%		7.42				15.05				26.33				20.20				18.34				16.93				17.99
* Diluted earnings per share calculation deducts (in thousands):
Subsidiaries stock options, if dilutive					$		(28	)			(21	)			(665	)			(120	)			(51	)			(834	)			(668	)
Average Balance Sheet Data (in millions):
Assets					$		6,329				6,545				6,565				6,355				5,877				6,449				5,294
Tangible assets		(note 2)			$		6,244				6,459				6,479				6,268				5,790				6,363				5,207
Loans					$		4,550				4,726				4,802				4,668				4,359				4,686				3,976
Investments					$		1,263				1,322				1,306				1,242				1,076				1,283				896
Deposits and escrows					$		3,704				3,655				3,658				3,557				3,371				3,644				3,232
Stockholders’ equity					$		533				516				490				480				468				505				445
Tangible stockholders’ equity		(note 2)			$		453				432				409				394				377				422				354

Notes:

BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (unaudited)

(In thousands, except share data)		12/31/2005				12/31/2004
ASSETS
Cash and due from banks		$	167,032				118,967
Short term investments			3,229				16,093
Securities available for sale (at fair value)			674,544				747,160
Securities owned (at fair value)			180,292				125,443
Investment securities and tax certificates (approximate fair value: $363,329 and $306,963)			364,444				307,438
Loans receivable, net of allowance for loan losses of $41,192 and $46,010			4,486,502				4,599,048
Federal Home Loan Bank stock, at cost which approximates fair value			69,931				78,619
Accrued interest receivable			41,490				35,982
Real estate held for development and sale			21,177				27,692
Investments and advances to unconsolidated subsidiaries			12,464				7,910
Office properties and equipment, net			154,120				129,790
Deferred tax asset, net			28,032				20,269
Goodwill			76,674				76,674
Core deposit intangible asset			8,395				10,270
Due from clearing agent			—				16,619
Other assets			43,232				38,803
Total assets		$	6,331,558				6,356,777
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits
Demand		$	1,019,949				890,398
NOW			755,708				658,137
Savings			313,889				270,001
Money market			846,441				875,422
Certificates of deposit			816,689				763,244
Total deposits			3,752,676				3,457,202
Advances from FHLB			1,283,532				1,544,497
Securities sold under agreements to repurchase			116,026				296,643
Federal funds purchased			139,475				105,000
Subordinated debentures, notes and bonds payable			39,092				37,741
Junior subordinated debentures			263,266				263,266
Securities sold but not yet purchased			35,177				39,462
Due to clearing agent			24,486				—
Other liabilities			161,602				143,701
Total liabilities			5,815,332				5,887,512
Stockholders’ equity:
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued and outstanding			—				—
Class A common stock, $.01 par value, authorized 80,000,000 shares; issued and outstanding 55,884,089 and 55,214,225 shares			559				552
Class B common stock, $.01 par value, authorized 45,000,000 shares; issued and outstanding 4,876,124 and 4,876,124 shares			49				49
Additional paid-in capital			261,720				259,702
Unearned compensation — restricted stock grants			(936	)			(1,001	)
Retained earnings			261,169				210,955
Total stockholders’ equity before accumulated other comprehensive income			522,561				470,257
Accumulated other comprehensive (loss)			(6,335	)			(992	)
Total stockholders’ equity			516,226				469,265
Total liabilities and stockholders’ equity		$	6,331,558				6,356,777

BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)

						For The Three Months Ended																				For the Years Ended
(in thousands)						12/31/2005				9/30/2005				6/30/2005				3/31/2005				12/31/2004				12/31/2005				12/31/2004
INTEREST INCOME:
Interest and fees on loans					$		72,542				73,110				71,099				66,355				60,088				283,106				209,719
Interest on securities available for sale							4,379				4,741				5,258				5,295				4,905				19,673				18,083
Interest on tax exempt securities							3,695				3,733				3,769				3,225				2,076				14,422				4,048
Interest and dividends on investments and securities owned							9,109				8,708				7,932				7,311				7,377				33,060				28,705
Total interest income							89,725				90,292				88,058				82,186				74,446				350,261				260,555
INTEREST EXPENSE:
Interest on deposits							11,736				10,519				9,534				8,295				7,534				40,084				28,355
Interest on advances from FHLB							15,565				17,332				15,604				13,674				11,458				62,175				37,689
Interest on short-term borrowed funds							2,746				2,108				2,646				2,099				1,356				9,599				3,191
Interest on long-term debt							6,825				6,392				6,316				5,672				5,112				25,205				19,885
Capitalized interest on real estate developments							(513	)			(477	)			(437	)			(452	)			(390	)			(1,879	)			(1,398	)
Total interest expense							36,359				35,874				33,663				29,288				25,070				135,184				87,722
NET INTEREST INCOME							53,366				54,418				54,395				52,898				49,376				215,077				172,833
Provision (recovery) for loan losses							(109	)			(3,410	)			820				(3,916	)			(4,004	)			(6,615	)			(5,109	)
NET INTEREST INCOME AFTER PROVISION							53,475				57,828				53,575				56,814				53,380				221,692				177,942
NON-INTEREST INCOME:
Service charges on deposits							17,808				16,415				14,744				12,989				13,637				61,956				51,435
Other service charges and fees							6,436				5,824				5,849				5,238				6,733				23,347				23,620
Broker/dealer revenue							49,831				50,368				83,915				54,686				53,061				238,800				231,804
Securities activities, net							474				181				90				102				3,653				847				3,730
Litigation settlement							—				—				—				—				—				—				22,840
Gain on sales of loans							221				295				116				110				152				742				483
Income (loss) from real estate operations							(558	)			1,142				1,655				2,241				517				4,480				2,405
Income from unconsolidated subsidiaries							211				142				137				131				126				621				485
Other							2,299				2,137				2,697				3,173				2,026				10,306				7,987
Total non-interest income							76,722				76,504				109,203				78,670				79,905				341,099				344,789
NON-INTEREST EXPENSE:
Employee compensation and benefits							70,257				68,455				78,391				65,795				65,354				282,898				255,064
Occupancy and equipment							15,394				14,853				13,953				13,237				14,753				57,437				48,146
Impairment of office properties and equipment							—				—				3,706				—				—				3,706				—
Advertising and promotion							11,701				6,667				8,069				6,298				5,955				32,735				21,036
Professional fees							4,692				4,207				4,316				4,081				7,245				17,296				18,207
Communications							3,470				3,371				3,508				3,205				3,301				13,554				12,527
Floor broker and clearing fees							2,433				2,305				2,012				2,368				2,452				9,118				9,835
Cost associated with debt redemption							—				—				—				—				—				—				11,741
Reserve for fines and penalties, compliance matter							10,000				—				—				—				—				10,000				—
Other							12,052				11,326				10,188				9,801				8,460				43,367				35,497
Total non-interest expense							129,999				111,184				124,143				104,785				107,520				470,111				412,053
Income (loss) before income taxes							198				23,148				38,635				30,699				25,765				92,680				110,678
Provision for income taxes							1,801				6,888				14,098				10,821				8,472				33,608				39,910
GAAP net income (loss)					$		(1,603	)			16,260				24,537				19,878				17,293				59,072				70,768
Reconciliation of Operating and GAAP Net Income
GAAP net income (loss)					$		(1,603	)			16,260				24,537				19,878				17,293				59,072				70,768
Impairment of office properties and equipment							—				—				2,409				—				—				2,409				—
Costs associated with debt redemption							—				—				—				—				—				—				7,632
Reserve for fines and penalties, compliance matter							10,000				—				—				—				—				10,000				—
Litigation settlement							—				—				—				—				—				—				(14,785	)
Operating net income		(note 1)			$		8,397				16,260				26,946				19,878				17,293				71,481				63,615

BankAtlantic Bancorp, Inc. and Subsidiaries
Consolidated Average Balance Sheet (unaudited)

										For the three months ended
(in thousands except percentages and per share data)										12/31/2005				9/30/2005				6/30/2005				3/31/2005				12/31/2004
Loans:
Residential real estate									$		2,115,899				2,245,067				2,262,214				2,085,473				1,812,018
Commercial real estate											1,576,131				1,643,570				1,731,243				1,764,927				1,743,952
Consumer											538,321				527,190				505,338				487,746				467,716
Lease financing											1,433				2,768				4,710				6,242				8,219
Commercial business											91,979				90,578				91,756				128,372				136,391
Small business											226,153				216,931				206,272				195,733				190,849
Total Loans											4,549,916				4,726,104				4,801,533				4,668,493				4,359,145
Investments — taxable											867,625				924,911				899,134				877,003				823,903
Investments — tax exempt											394,935				396,908				406,403				364,824				251,699
Total interest earning assets											5,812,476				6,047,923				6,107,070				5,910,320				5,434,747
Goodwill and core deposit intangibles											85,277				85,679				86,095				86,791				87,164
Other non-interest earning assets											431,215				411,116				371,549				358,024				354,815
Total assets									$		6,328,968				6,544,718				6,564,714				6,355,135				5,876,726
Tangible assets					(note 2)				$		6,243,691				6,459,039				6,478,619				6,268,344				5,789,562
Deposits:
Demand deposits									$		1,017,467				1,000,219				981,643				912,897				845,797
Savings											309,007				303,268				301,331				281,512				262,549
NOW											692,128				666,567				685,769				664,313				622,308
Money market											887,858				904,382				906,514				921,382				903,602
Certificates of deposit											797,187				781,044				782,335				777,353				736,704
Total deposits											3,703,647				3,655,480				3,657,592				3,557,457				3,370,960
Short-term borrowed funds											276,333				251,242				359,861				352,911				266,840
FHLB advances											1,345,033				1,659,411				1,615,310				1,536,434				1,339,051
Long-term debt											301,655				298,887				299,075				300,551				299,741
Total borrowings											1,923,021				2,209,540				2,274,246				2,189,896				1,905,632
Other liabilities											169,156				163,581				142,617				128,233				132,047
											5,795,824				6,028,601				6,074,455				5,875,586				5,408,639
Stockholders’ equity											533,144				516,117				490,259				479,549				468,087
Total liabilities and stockholders’ equity									$		6,328,968				6,544,718				6,564,714				6,355,135				5,876,726
Other comprehensive income (loss) in stockholders’ equity									$		(4,810	)			(1,612	)			(5,119	)			(949	)			3,656
Tangible stockholders’ equity					(note 2)				$		452,677				432,050				409,283				393,707				377,267
Period End
Total loans, net										$	4,486,502				4,543,245				4,803,529				4,637,232				4,599,048
Total assets											6,331,558				6,352,822				6,717,676				6,418,351				6,356,777
Total stockholders’ equity											516,226				523,392				510,394				480,981				469,265
Common shares outstanding											60,760,213				60,738,610				60,642,777				60,542,092				60,090,349
Cash dividends											2,308,888				2,308,067				2,122,497				2,118,973				2,103,164
Common stock cash dividends per share											0.038				0.038				0.035				0.035				0.035
Closing stock price											14.00				16.99				18.95				17.40				19.90
High stock price for the quarter											17.19				19.33				19.15				20.00				20.08
Low stock price for the quarter											13.29				15.64				16.51				17.02				16.06
Book value per share											8.50				8.62				8.42				7.94				7.81

Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)

		For the Three Months Ended																				For the Years Ended
(In thousands)		12/31/2005				9/30/2005				6/30/2005				3/31/2005				12/31/2004				12/31/2005				12/31/2004
Net interest income		$	54,760				55,939				56,031				54,345				50,339				221,075				176,858
Provision (recovery) for loan losses			(109	)			(3,410	)			820				(3,916	)			(4,004	)			(6,615	)			(5,109	)
Net Interest income after provision for loan losses			54,869				59,349				55,211				58,261				54,343				227,690				181,967
Non-interest income
Service charges on deposits			17,808				16,415				14,744				12,989				13,637				61,956				51,435
Other service charges and fees			6,436				5,824				5,849				5,238				6,733				23,347				23,620
Securities gains (losses)			—				23				87				7				40				117				37
Gain on sales of loans			221				295				116				110				152				742				483
Income from real estate operations			(558	)			1,142				1,655				2,241				517				4,480				2,405
Other non-interest income			1,928				2,019				2,514				2,956				1,924				9,417				7,744
Total non-interest income			25,835				25,718				24,965				23,541				23,003				100,059				85,724
Non-interest expense
Employee compensation and benefits			31,445				28,106				27,577				26,398				25,136				113,526				93,154
Occupancy and equipment			11,503				10,826				10,165				9,117				9,658				41,611				32,713
Impairment of office properties and equipment			—				—				3,706				—				—				3,706				—
Advertising			10,244				5,518				5,965				5,168				5,087				26,895				16,012
Professional fees			2,521				2,641				2,638				1,895				4,725				9,695				11,286
Cost associated with debt redemption			—				—				—				—				—				—				11,741
Reserve for fines and penalties, compliance matter			10,000				—				—				—				—				10,000				—
Other			10,076				9,631				8,265				7,686				7,058				35,658				28,716
Total non-interest expense			75,789				56,722				58,316				50,264				51,664				241,091				193,622
Income from bank operations business segment before income taxes			4,915				28,345				21,860				31,538				25,682				86,658				74,069
Provision for income taxes			4,018				9,054				7,089				10,677				8,870				30,838				25,529
Net income from bank operations business segment		$	897				19,291				14,771				20,861				16,812				55,820				48,540
Reconciliation of Operating and business segment net income
Business segment income		$	897				19,291				14,771				20,861				16,812				55,820				48,540
Impairment of office properties and equipment			—				—				2,409				—				—				2,409				—
Cost associated with debt redemption			—				—				—				—				—				—				7,632
Reserve for fines and penalties, compliance matter			10,000				—				—				—				—				10,000				—
Operating net income		$	10,897				19,291				17,180				20,861				16,812				68,229				56,172

Bank Operations Business Segment
Condensed Statements of Condition and Statistics (Unaudited)

						For the Three Months Ended																				For the Years Ended
(in thousands except percentages
and per share data)						12/31/2005				9/30/2005				6/30/2005				3/31/2005				12/31/2004				12/31/2005				12/31/2004
Statistics:
Average earning assets			$				5,575,727				5,820,252				5,882,065				5,696,192				5,225,840				5,743,439				4,680,006
Average interest bearing liabilities			$				4,351,337				4,606,611				4,691,644				4,575,247				4,172,665				4,555,734				3,715,591
Average tangible assets			$				5,919,617				6,132,529				6,180,083				5,979,211				5,492,505				6,052,911				4,931,637
Average tangible equity			$				495,614				473,387				463,813				448,667				435,787				470,508				423,252
Borrowings to deposits and borrowings			%				29.68				31.64				36.18				33.79				36.53				29.68				36.53
Tax equivalent:
Yield on earning assets			%				6.24				6.05				5.84				5.64				5.50				5.94				5.32
Cost of interest-bearing liabilities			%				2.80				2.64				2.43				2.19				1.99				2.51				1.92
Interest spread			%				3.44				3.41				3.41				3.45				3.51				3.43				3.40
Net interest margin			%				4.05				3.96				3.90				3.88				3.91				3.95				3.79
GAAP:
Efficiency ratio			%				94.04				69.46				72.00				64.54				70.44				75.07				73.74
Return on average tangible assets			%				0.06				1.26				0.96				1.40				1.22				0.92				0.98
Return on average tangible equity			%				0.72				16.30				12.74				18.60				15.43				11.86				11.47
Operating (1):
Efficiency ratio			%				81.63				69.46				67.42				64.54				70.44				70.81				69.27
Return on average tangible assets			%				0.74				1.26				1.11				1.40				1.22				1.13				1.14
Return on average tangible equity			%				8.79				16.30				14.82				18.60				15.43				14.50				13.27
Earning assets repricing (2):
Percent of earning assets that have fixed rates			%				46				50
Percent of earning assets that have variable rates			%				54				50
One year Gap			%				7				4