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) April 25, 2007

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:

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

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

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

o		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 Items 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 April 25, 2007, BankAtlantic Bancorp, Inc. (the Company”) issued a press release announcing its financial results for the quarter ended March 31, 2007. 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 that uses the Company’s internal allocation measures to determine net contribution and non-interest expense allocable to new bank branches (which we refer to as stores). 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 April 25, 2007

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: April 25, 2007

BankAtlantic Bancorp Reports Financial Results for First Quarter, 2007

FORT LAUDERDALE, Florida — April 25, 2007 — BankAtlantic Bancorp, Inc. (NYSE: BBX), reported financial results for the quarter ended March 31, 2007. Net income for the first quarter of 2007 was $5.7 million, or $0.09 per diluted share, compared to $6.5 million, or $0.10 per diluted share reported for the first quarter of 2006. The Company recorded a loss from continuing operations of ($2.2) million, or ($0.04) per diluted share, compared to income from continuing operations of $8.0 million, or $0.13 per diluted share for the first quarter of 2006.

BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, “During the quarter, over 79,000 new customer accounts joined BankAtlantic as we celebrated the Company’s 55^th birthday and fifth anniversary as ‘Florida’s Most Convenient Bank’. We also experienced continued core deposit growth and were successful in achieving our goals in our new ‘store expansion program’, including our entry into the Orlando market. As previously announced, we’ve pursued expense management initiatives with a focus on reducing operational expenses.

“While we believe Florida remains a very attractive market, Florida’s real estate market has slowed significantly, and we are facing the challenges associated with this slowdown. As discussed later in this release, we experienced an increase in non-accrual loans in our residential real estate development portfolio during the quarter and expect that we may experience further deterioration in the portfolio during 2007. Additionally, because of the flat yield curve, we are experiencing, along with the rest of the industry, slower deposit growth and margin compression.

“We continue to believe the Florida market is resilient and that organic deposit growth and aggressive new store openings will build a broad foundation for the future, yielding long-term franchise and shareholder value.”

Accomplishments and highlights include:
BankAtlantic

Store Expansion Program — BankAtlantic’s Chief Executive Officer and President, Jarett S. Levan, commented, “During the first quarter of 2007, BankAtlantic marked its fifth anniversary as ‘Florida’s Most Convenient Bank’ with the grand opening of five new stores, including its first two stores in the greater Orlando area. We have opened a total of 22 new stores since January 1, 2005, accounting for $136 million in core deposit and $227 million in total deposit balances respectively. In the first quarter of 2007, the new stores generated $44 million of core deposit balance growth and over 25,000 core deposit accounts. We continue to be very pleased with these new stores, which on average have met or exceeded our goals in core deposit balances in their first year and to ‘breakeven’ on a current earnings basis in 12-15 months. As of quarter-end, we had a total of 93 stores throughout Florida.

“Due to the time required for newly opened stores to breakeven, the expenses associated with BankAtlantic’s ‘store expansion program’ negatively impacted BankAtlantic’s first quarter results by $2.7 million after tax, and increased the efficiency ratio by approximately 550 basis points. We anticipate that the expansion program will have a negative impact on 2007 net income by approximately $8.2 million. However, we believe this continued investment is well supported by the success achieved by the ‘store expansion program’ to date, particularly in the contribution to the Bank’s overall core deposit growth, and will continue to contribute to the overall franchise value.

Core Deposit Accounts and Balances — “We are pleased with the core deposit growth achieved during the quarter, particularly in light of continued competitive and economic pressures. The quarter’s growth in total bank core deposit balances was $189.0 million, or 8.4% over the fourth quarter of 2006. At quarter end, ‘total bank’ and ‘same store’ core deposit balances increased 5.9% and 5.0%, respectively, compared with the first quarter of 2006, representing a total bank net increase of $135.1 million in core deposit balances. In the first quarter of 2007, BankAtlantic opened over 79,000 new core deposit accounts, which represent an increase of 3.6% over the number of accounts opened in the corresponding 2006 period and an increase of 8.5% from the immediately preceding quarter. Core deposit balances now represent 59.5% of total deposits, up from 57.9% in the comparable 2006 period.

Net Income — “For the first quarter of 2007, the Bank’s net income was $0.6 million, down from $10.2 million in the comparable 2006 quarter. As discussed in detail in subsequent sections of this release, the reduction was caused primarily by net interest margin compression, combined with an increased loan loss provision. Both factors reflect current economic conditions impacting our business. Net income was also negatively impacted by the expenses associated with the ‘store expansion program’, as well as the costs associated with our steps to reduce personnel expense.

Credit Quality — “During the first quarter of 2007, non-accrual loans increased $19.6 million from the first quarter of 2006, the majority of which related to residential land acquisition and development loans in our commercial real estate loan portfolio. As a result, the ratio of non-performing loans to total loans increased from 0.14% at March 31, 2006 to 0.55% at March 31, 2007. The provision for loan losses in the first quarter of 2007 was $7.5 million, or 0.64% of average loans (annualized) versus $0.2 million, or 0.01% for the first quarter of 2006. The allowance for loan losses increased $8.5 million from $41.9 million (0.94% of total loans) at March 31, 2006 to $50.4 million (1.08% of total loans) at March 31, 2007; and the ratio of allowance for loan losses to non-performing loans stood at 196% at March 31, 2007.

“The current environment for residential land acquisition and development loans is a concern, particularly in Florida, and represents an area where we remain very cautious in our credit management. In view of market conditions, we anticipate we may experience further deterioration in the portfolio over the next several quarters as the market attempts to absorb an oversupply of available lot inventory.

“On the other hand, we remain pleased with the performance of our purchased residential mortgage portfolio, which was approximately $2.1 billion at quarter-end, representing 38.2% of earning assets. The portfolio has no sub-prime or negative amortizing loans, and each loan is individually underwritten prior to purchase. The portfolio’s average FICO score is 736, and delinquency at quarter-end was approximately 30 basis points.

Net Interest Margin and Earning Assets — “Net interest income for the first quarter of 2007 was $52.1 million compared to $55.1 million in the corresponding 2006 quarter, reflecting a 1.3% increase in earning assets combined with a 24 basis point decline in the tax equivalent net interest margin. Average earning assets increased $75.2 million, while average core deposits and total deposits increased $132.6 million and $71.1 million respectively. The period-end ratio of borrowings to deposits and borrowings declined in the first quarter of 2007 to 26.4%, from 30.4% in the fourth quarter of 2006.

“The tax equivalent net interest margin was 3.78% in the first quarter of 2007, down from 4.11% in the corresponding quarter of 2006. While earning asset yields improved 32 basis points, the cost of interest bearing liabilities increased 59 basis points, reflecting the growth in higher cost deposit categories and the impact of balance growth within our tiered-pricing structure. Future improvement in net interest margin is challenged by a protracted flatness of the yield curve, recent increases in non-accrual assets and growth dynamics impacting the mix of both interest bearing liabilities and earning assets (All references to net interest margin and earning assets exclude loan participations sold previously recognized as secured borrowings).

Non-interest income — “Non-interest income for the first quarter was $35.0 million, or 29.8% greater than the comparable 2006 period. Additionally, fee income as a percent of total revenues rose to 36.3% in the first quarter of 2007 compared to 30.8% in 2006, reflecting the increase in transaction accounts, and the increasing base of revenues not directly impacted by the interest rate environment.

Non-interest expense — “Non-interest expense for the first quarter of 2007 was $76.2 million, before one-time charges of $2.6 million related to a reduction in staff in the first quarter, $8.4 million greater than the corresponding quarter of 2006, and $2.3 million less than the fourth quarter of 2006. The increase in expenses is primarily related to the ‘store expansion program’. As discussed in this release, we anticipate that the impact of the staff reductions and the reduced marketing expenditures will be fully effective starting the second quarter of 2007.

Expense Management — “During the quarter, we’ve worked to reduce our operating expenses without impacting the ‘store expansion program’ or affecting our customer service standards. We reduced our workforce by approximately 225 associates, or 8%. The quarter’s results include the $2.6 million charge associated with this workforce reduction. The expected annualized compensation and benefits savings is approximately $10 million. The impact will begin to be fully reflected in the results for the second quarter. As noted earlier, marketing expenses were also reduced in the quarter and should approximate our 2005 levels. We continue to explore opportunities for expense savings throughout the organization,” concluded Jarett S. Levan.

BankAtlantic Bancorp:
As previously announced, during the quarter, BankAtlantic Bancorp completed the sale of Ryan Beck Holdings, Inc. (Ryan Beck) to Stifel Financial Corp. (NYSE:SF) in a tax-free transaction. Income from discontinued operations includes a gain of $16.5 million on that transaction. Net of the operating loss of Ryan Beck prior to its sale, we recorded after-tax income of $7.9 million from Ryan Beck. A significant portion of the loss at Ryan Beck prior to the sale is related to one-time charges directly tied to this sale.

Additionally, as part of the sale of Ryan Beck, BankAtlantic Bancorp is to receive warrants to purchase approximately 482,000 shares of Stifel common stock at an exercise price of $36.00 per share. The warrants are accounted for as derivatives, and accordingly changes in value are reflected in earnings. We recorded a $1.5 million loss associated with the change in value of the warrants resulting from a decline in Stifel stock price from the time of acquisition to the March 31, 2007 period-end.

As part of our ongoing stock buyback program, BankAtlantic Bancorp repurchased 1.3 million shares during the first quarter of 2007.

Further, BankAtlantic Bancorp’s Board of Directors declared a cash dividend of $0.041 per share to all shareholders of record of its Class A and Class B Common Stock at the close of trading on April 4, 2007. The first quarter’s dividend declaration marked BankAtlantic Bancorp’s 55^th consecutive quarterly dividend payment.

Financial Highlights:

First Quarter, 2007 Compared to First Quarter, 2006

BankAtlantic Bancorp — consolidated:

	•		Net income of $5.7 million vs. $6.5 million, a decrease of 11.5%
	•		Diluted earnings per share of $0.09 vs $0.10, a decrease of 10%
	•		Loss from continuing operations of ($2.2) million vs. income from continuing operations of $8.0 million
	•		Diluted loss per share from continuing operations of ($0.04) vs. diluted earnings per share from continuing operations of $0.13
	•		Return on average tangible equity from continuing operations was (1.96%)
	•		Book value per share at March 31, 2007 was $8.61

BankAtlantic:

	•		Business segment net income was $639,000 vs. $10.2 million
	•		Over 79,000 new core deposit accounts opened, an increase of 3.6% over accounts opened in the corresponding 2006 quarter, with related new balances of $235.8 million
	•		Return on average tangible assets was 0.04%
	•		Return on average tangible equity was 0.51%
	•		Tax equivalent net interest margin was 3.78%
	•		Non-interest income was $35.0 million vs. $27.0 million, an increase of 29.8%
	•		Non-interest expense before the one-time severance charge was $76.2 million vs. $67.8 million, an increase of 12.4%

- — - — - — - — - -

BankAtlantic Bancorp will host an investor and media teleconference call and webcast on Thursday, April 26, 2007, 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 1-800-968-8156. International calls may be placed to 706-634-5752. Domestic and international callers may reference PIN number 5054519.

     A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Thursday, May 10, 2007. 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 5054519.

Webcast Information:

     Alternatively, individuals may listen to the live and/or archived webcast of the teleconference call. To listen to the webcast, visit www.BankAtlanticBancorp.com, access the “Investor Relations” section and click on the “Webcast” navigation link, or go directly to http://www.visualwebcaster.com/event.asp?id=38962. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Thursday, May 10, 2007.

     BankAtlantic Bancorp’s first quarter, 2007 earnings results press release and financial summary, as well as the Supplemental Financials (a detailed summary of significant financial events and extensive business segment financial data), will be available on its website at: www.BankAtlanticBancorp.com.

	•		To view the financial summary, access the “Investor Relations” section and click on the “Quarterly Financials” navigation link.
	•		To view the Supplemental Financials, access the “Investor Relations” section and click on the “Supplemental Financials” navigation link.

     Copies of BankAtlantic Bancorp’s first quarter, 2007 earnings results press release and financial summary, and the Supplemental Financials will also be made 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.

About BankAtlantic Bancorp:
BankAtlantic Bancorp (NYSE: BBX) is a diversified financial services holding company and the parent company of BankAtlantic. BankAtlantic Bancorp owned Ryan Beck Holdings, Inc. (“Ryan Beck”), a subsidiary engaged in retail and institutional brokerage and investment banking. On March 1, 2007, BankAtlantic Bancorp announced that it had completed the sale of Ryan Beck to Stifel Financial Corp. Ryan Beck is accounted for as a discontinued operation.

About BankAtlantic:
BankAtlantic, “Florida’s Most Convenient Bank” is one of the largest financial institutions headquartered in Florida and provides a comprehensive offering of banking services and products via its broad network of community stores and its online banking division — BankAtlantic.com. BankAtlantic currently has 93 stores and operates more than 200 conveniently located ATMs.

BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, including several stores open until midnight, Totally Free Online Banking & Bill Pay, 24/7 Customer Service Center, Totally Free Change Exchange coin counters and free retail and business checking with a free gift.

For further information, please visit our websites:
www.BankAtlanticBancorp.com
www.BankAtlantic.com

BankAtlantic Bancorp Contact Info:
Donna Rouzeau,
Assistant Vice President, Investor Relations & Corporate Communications
Email: CorpComm@BankAtlanticBancorp.com
Leo Hinkley,
Senior Vice President, Investor Relations Officer
Email: InvestorRelations@BankAtlanticBancorp.com
Phone: (954) 940-5300, Fax: (954) 940-5320
Mailing Address: BankAtlantic Bancorp, Investor Relations
2100 West Cypress Creek Road, Fort Lauderdale, FL 33309

BankAtlantic, “Florida’s Most Convenient Bank,” Contact Info:
Public Relations:
Hattie Hess, Vice President, Public Relations
Telephone: 954-940-6383, Fax: 954-940-6310
Email: hhess@BankAtlantic.com
Public Relations for BankAtlantic:
Boardroom Communications
Caren Berg
Phone: 954-370-8999, Fax: 954-370-8892
Email: caren@boardroompr.com

* To receive future BankAtlantic Bancorp news releases or announcements directly via Email, please click on the Email Broadcast Sign Up button on our website: www.BankAtlanticBancorp.com.

# # #

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 real estate markets in our trade area, and where our collateral is located; the quality of our residential land acquisition and development loans and conditions specifically in that market sector; 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 capital markets and the impact of such conditions on our activities and the value of our assets; BankAtlantic’s seven-day banking initiatives and other growth, marketing or advertising initiatives not resulting in continued growth of core deposits or producing results which do not justify their costs; the success of our expenses discipline initiatives; BankAtlantic’s new store expansion program, successfully opening the anticipated number of new stores in 2007 and achieving growth and profitability at the stores; and the impact of periodic testing of goodwill and other intangible assets for impairment. Past performance, actual or estimated new account openings and growth rate may not be indicative of future results. Additionally, we acquired a significant investment in Stifel equity securities in connection with the Ryan Beck Holdings, Inc. sale subjecting us to the risk of the value of Stifel shares and warrants received varying over time. 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
						3/31/2007				12/31/2006				9/30/2006				6/30/2006				3/31/2006
Earnings (in thousands):
Net (loss) income from continuing operations						$	(2,204	)			1,048				7,366				10,443				8,022
Net (loss) income						$	5,716				(1,670	)			2,524				8,076				6,457
Average Common Shares Outstanding (in thousands):
Basic							60,635				61,007				61,046				61,324				61,005
Diluted							60,635				62,278				62,412				62,820				62,761
Key Performance Ratios
Basic (loss) earnings per share from continuing operations						$	(0.04	)			0.02				0.12				0.17				0.13
Diluted (loss) earnings per share from continuing operations						$	(0.04	)			0.02				0.12				0.17				0.13
Basic earnings (loss) per share						$	0.09				(0.03	)			0.04				0.13				0.11
Diluted earnings (loss) per share						$	0.09				(0.03	)			0.04				0.13				0.10
Return on average tangible assets from continuing operations		(note 1)				%	(0.14	)			0.07				0.46				0.68				0.51
Return on average tangible equity from continuing operations		(note 1)				%	(1.96	)			0.92				6.52				9.27				7.24
Average Balance Sheet Data (in millions):
Assets						$	6,439				6,520				6,467				6,272				6,388
Tangible assets		(note 1)				$	6,358				6,436				6,383				6,188				6,304
Loans						$	4,651				4,655				4,611				4,479				4,610
Investments						$	1,142				1,141				1,151				1,084				1,082
Deposits and escrows						$	3,902				3,776				3,731				3,849				3,831
Stockholders’ equity						$	529				533				526				526				522
Tangible stockholders’ equity		(note 1)				$	450				454				452				451				443

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

		March 31,				December 31,				March 31,
(In thousands, except share data)		2007				2006				2006
ASSETS
Cash and cash equivalents		$	130,184				138,904				176,072
Securities available for sale (at fair value)			666,733				651,316				670,683
Investment securities held-to-maturity (approximate fair value:
$270,617, $209,020 and $205,000)			273,040				206,682				207,137
Financial instruments accounted for at fair value			8,811				—				—
Tax certificates net of allowance of $3,782, $3,699 and $3,513			157,062				195,391				135,114
Loans receivable, net of allowance for loan losses of $50,373, $43,602 and $41,889			4,622,784				4,595,920				4,521,725
Federal Home Loan Bank stock, at cost which approximates fair value			69,503				80,217				60,800
Discontinued operations assets held for sale			—				190,763				230,385
Real estate held for development and sale			27,031				25,333				22,347
Real estate owned			23,135				21,747				1,647
Office properties and equipment, net			229,810				219,717				163,057
Goodwill and other intangible assets			76,937				77,324				78,485
Other assets			95,146				92,348				90,663
Total assets		$	6,380,176				6,495,662				6,358,115
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits
Demand		$	1,031,628				995,920				1,152,361
NOW			799,300				779,383				790,225
Savings			598,579				465,172				351,839
Money market			653,231				677,642				806,871
Certificates of deposits			1,002,284				948,919				859,470
Total deposits			4,085,022				3,867,036				3,960,766
Advances from FHLB			1,297,055				1,517,058				1,085,914
Securities sold under agreements to repurchase			76,711				101,932				94,434
Federal funds purchased and other short term borrowings			46,751				32,026				81,197
Secured borrowings			—				—				111,754
Subordinated debentures, notes and bonds payable			29,654				29,923				41,832
Junior subordinated debentures			263,266				263,266				263,266
Discontinued operations liabilities held for sale			—				95,246				125,499
Other liabilities			66,740				64,193				73,840
Total liabilities			5,865,199				5,970,680				5,838,502
Stockholders’ equity:
Common stock			600				611				613
Additional paid-in capital			247,755				260,460				262,626
Retained earnings			269,048				265,089				263,500
Total stockholders’ equity before accumulated other comprehensive loss			517,403				526,160				526,739
Accumulated other comprehensive loss			(2,426	)			(1,178	)			(7,126	)
Total stockholders’ equity			514,977				524,982				519,613
Total liabilities and stockholders’ equity		$	6,380,176				6,495,662				6,358,115

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

		For The Three Months Ended
(in thousands)		3/31/2007				12/31/2006				9/30/2006				6/30/2006				3/31/2006
INTEREST INCOME:
Interest and fees on loans		$	79,587				81,019				80,790				75,765				75,386
Interest on securities available for sale			4,561				4,472				4,483				4,314				4,305
Interest on tax exempt securities			3,796				3,817				3,804				3,862				3,806
Interest and dividends on taxable investments and tax certificates			5,596				6,543				6,039				4,396				4,376
Total interest income			93,540				95,851				95,116				88,337				87,873
INTEREST EXPENSE:
Interest on deposits			19,002				17,258				15,095				13,852				12,754
Interest on advances from FHLB			18,723				20,837				18,509				13,007				14,139
Interest on short-term borrowed funds			2,555				2,505				5,078				4,931				2,575
Interest on secured borrowings			—				—				—				—				2,401
Interest on long-term debt			6,114				6,184				6,521				6,377				5,963
Capitalized interest on real estate development			—				(85	)			(75	)			(289	)			(480	)
Total interest expense			46,394				46,699				45,128				37,878				37,352
NET INTEREST INCOME			47,146				49,152				49,988				50,459				50,521
Provision for (recovery from) loan losses			7,461				8,160				271				(20	)			163
NET INTEREST INCOME AFTER PROVISION			39,685				40,992				49,717				50,479				50,358
NON-INTEREST INCOME:
Service charges on deposits			24,595				26,091				24,008				21,274				19,099
Other service charges and fees			7,033				7,188				6,779				7,353				6,222
Securities activities, net			1,555				2,199				2,243				2,830				2,541
Gain on sales of loans			200				211				175				200				94
Gain associated with debt redemption			—				—				—				1,092				436
Income (loss) from real estate operations			—				—				—				114				(1,096	)
Income from unconsolidated subsidiaries			1,146				303				266				278				820
(Loss) gain on the sale of office properties and equipment, net			(153	)			(148	)			(3	)			1,806				(28	)
Other			2,376				2,581				2,740				2,676				2,272
Total non-interest income			36,752				38,425				36,208				37,623				30,360
NON-INTEREST EXPENSE:
Employee compensation and benefits			41,090				38,759				38,619				37,590				35,836
Occupancy and equipment			15,944				16,247				15,018				13,429				12,614
Advertising and promotion			5,858				10,400				8,649				7,400				8,618
Professional fees			1,713				1,632				1,968				2,374				2,317
Costs associated with debt redemption			—				—				—				1,034				423
Check losses			1,857				2,639				2,855				1,875				1,246
Supplies and postage			1,853				1,736				1,719				1,737				1,661
Telecommunication			1,381				1,233				1,241				1,158				1,153
One-time termination benefits			2,553				—				—				—				—
Other			7,244				7,195				6,438				7,493				5,880
Total non-interest expense			79,493				79,841				76,507				74,090				69,748
(Loss) income from continuing operations before income taxes			(3,056	)			(424	)			9,418				14,012				10,970
(Benefit) provision for income taxes			(852	)			(1,472	)			2,052				3,569				2,948
(Loss) income from continuing operations			(2,204	)			1,048				7,366				10,443				8,022
Discontinued operations			7,920				(2,718	)			(4,842	)			(2,367	)			(1,565	)
Net income (loss)		$	5,716				(1,670	)			2,524				8,076				6,457

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

				For the three months ended
(in thousands except percentages and per share data)				3/31/2007				12/31/2006				9/30/2006				6/30/2006				3/31/2006
Loans:
Residential real estate				$	2,181,478				2,176,047				2,130,077				2,047,430				2,043,310
Commercial real estate					1,420,944				1,462,005				1,498,192				1,480,314				1,683,173
Consumer					606,472				584,972				563,002				546,624				539,937
Commercial business					156,237				155,884				152,796				148,776				102,533
Small business					285,387				276,103				267,263				255,701				241,103
Total Loans					4,650,518				4,655,011				4,611,330				4,478,845				4,610,056
Investments — taxable					743,936				740,568				751,922				679,622				680,739
Investments — tax exempt					398,388				400,804				399,091				404,644				401,541
Total interest earning assets					5,792,842				5,796,383				5,762,343				5,563,111				5,692,336
Goodwill and core deposit intangibles					81,124				83,708				84,098				84,486				84,878
Discontinued assets held for sale					118,319				232,317				226,146				236,122				235,841
Other non-interest earning assets					446,785				407,149				394,311				388,656				375,388
Total assets				$	6,439,070				6,519,557				6,466,898				6,272,375				6,388,443
Tangible assets		(note 1)		$	6,357,946				6,435,849				6,382,800				6,187,889				6,303,565
Deposits:
Demand deposits				$	989,293				1,006,242				1,043,497				1,109,005				1,065,510
Savings					529,435				413,239				367,829				364,946				331,117
NOW					771,017				735,164				727,517				764,738				760,419
Money market					650,383				694,057				733,058				765,805				829,700
Certificates of deposit					961,716				927,431				858,688				844,318				843,866
Total deposits					3,901,844				3,776,133				3,730,589				3,848,812				3,830,612
Short-term borrowed funds					197,683				189,519				374,913				396,870				239,144
FHLB advances					1,405,279				1,528,039				1,354,944				1,010,458				1,164,675
Secured borrowings		(note 2)			—				—				—				—				125,293
Long-term debt					292,899				293,592				300,549				303,052				301,529
Total borrowings					1,895,861				2,011,150				2,030,406				1,710,380				1,830,641
Discontinued liabilities held for sale					61,202				141,254				131,266				138,339				136,169
Other liabilities					50,722				57,832				48,827				48,402				68,524
Total liabilities					5,909,629				5,986,369				5,941,088				5,745,933				5,865,946
Stockholders’ equity					529,441				533,188				525,810				526,442				522,497
Total liabilities and stockholders’ equity				$	6,439,070				6,519,557				6,466,898				6,272,375				6,388,443
Other comprehensive (loss) in stockholders’ equity					(2,142	)			(4,379	)			(10,270	)			(8,700	)			(5,350	)
Tangible stockholders’ equity		(note 1)		$	450,459				453,859				451,982				450,656				442,969
Net Interest Margin					3.35	%			3.56	%			3.63	%			3.75	%			3.62	%
Period End
Total loans, net				$	4,622,784				4,595,920				4,638,215				4,484,764				4,521,725
Total assets					6,380,176				6,495,662				6,570,220				6,402,889				6,358,115
Total stockholders’ equity					514,977				524,982				522,533				518,498				519,613
Class A common shares outstanding					54,956,368				56,157,425				56,114,600				56,338,922				56,417,568
Class B common shares outstanding					4,876,124				4,876,124				4,876,124				4,876,124				4,876,124
Cash dividends					2,458,490				2,507,673				2,506,136				2,330,675				2,334,112
Common stock cash dividends per share					0.041				0.041				0.041				0.038				0.038
Closing stock price					10.96				13.81				14.22				14.84				14.39
High stock price for the quarter					13.98				13.94				14.97				15.99				15.23
Low stock price for the quarter					10.87				12.66				12.96				13.86				12.67
Book value per share					8.61				8.60				8.57				8.47				8.48

Bank Operations Business Segment
Condensed Statements of Operations (Unaudited)

		For the Three Months Ended
(In thousands)		3/31/2007				12/31/2006				9/30/2006				6/30/2006				3/31/2006
Net interest income		$	52,070				54,103				55,107				55,257				55,138
Provision for (recovery from) loan losses			7,461				8,160				271				(20	)			163
Net Interest income after provision for loan losses			44,609				45,943				54,836				55,277				54,975
Non-interest income
Service charges on deposits			24,595				26,091				24,008				21,274				19,099
Other service charges and fees			7,033				7,188				6,779				7,353				6,222
Securities activities, net			621				200				—				458				(1	)
Gain on sales of loans			200				211				175				200				94
Gain associated with debt redemption			—				—				—				1,092				436
Income (loss) from real estate operations			—				—				—				114				(1,096	)
Income from unconsolidated subsidiaries			365				33				—				—				—
(Loss) gain on the sale of office properties, net			(153	)			(148	)			(3	)			1,806				(28	)
Other non-interest income			2,386				2,590				2,752				2,663				2,282
Total non-interest income			35,047				36,165				33,711				34,960				27,008
Non-interest expense
Employee compensation and benefits			40,664				37,709				37,512				36,529				34,349
Occupancy and equipment			15,942				16,242				15,015				13,424				12,610
Advertising			5,788				10,331				8,599				7,205				8,524
Professional fees			1,620				1,576				1,756				2,109				2,212
Costs associated with debt redemption			—				—				—				1,034				423
Check losses			1,857				2,639				2,855				1,875				1,246
Supplies and postage			1,850				1,735				1,716				1,728				1,654
Telecommunication			1,379				1,230				1,238				1,155				1,151
One-time termination benefits			2,553				—				—				—				—
Other			7,117				7,017				6,217				7,202				5,631
Total non-interest expense			78,770				78,479				74,908				72,261				67,800
Income from bank operations business segment before income taxes			886				3,629				13,639				17,976				14,183
Provision for income taxes			247				11				3,801				5,272				4,021
Net income from bank operations business segment		$	639				3,618				9,838				12,704				10,162

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

				For the Three Months Ended
(in thousands except percentages
and per share data)				3/31/2007				12/31/2006				9/30/2006				6/30/2006				3/31/2006
Statistics:
Tax equivalent:
Average earning assets				$	5,666,507				5,702,063				5,669,550				5,460,276				5,591,286
Average interest bearing liabilities				$	4,551,448				4,520,332				4,457,382				4,189,321				4,338,215
Average tangible assets				$	6,092,568				6,086,579				6,041,302				5,827,060				5,947,154
Average tangible equity				$	502,827				505,580				500,655				491,459				484,162
Borrowings to deposits and borrowings				%	26.39				30.36				33.63				29.35				26.31
Tax equivalent:
Yield on earning assets				%	6.71				6.83				6.81				6.58				6.39
Cost of interest-bearing liabilities				%	3.65				3.62				3.52				3.14				3.06
Interest spread				%	3.06				3.21				3.29				3.44				3.33
Net interest margin				%	3.78				3.96				4.04				4.17				4.02
Performance:
Efficiency ratio				%	90.42				86.94				84.34				80.10				82.54
Return on average tangible assets				%	0.04				0.24				0.65				0.87				0.68
Return on average tangible equity				%	0.51				2.86				7.86				10.34				8.40
Earning assets repricing:
Percent of earning assets that have fixed rates				%	54				52				52				52				55
Percent of earning assets that have variable rates				%	46				48				48				48				45
One year Gap				%	(3	)			(4	)			(4	)			(2	)			9

Bank Operations Business Segment
Condensed Statements of Financial Condition (Unaudited)

		As of
(In thousands)		3/31/2007				12/31/2006				9/30/2006				6/30/2006				3/31/2006
ASSETS
Loans receivable, net		$	4,622,784				4,595,920				4,638,215				4,484,764				4,521,725
Held to maturity securities			424,487				475,790				479,859				470,994				396,251
Available for sale securities			556,404				559,629				568,699				569,618				567,664
Goodwill			70,489				70,489				70,489				70,489				70,489
Core deposit intangible asset			6,447				6,834				7,221				7,608				7,995
Other assets			495,098				478,460				418,551				445,454				436,490
Total assets		$	6,175,709				6,187,122				6,183,034				6,048,927				6,000,614
LIABILITIES AND STOCKHOLDER’S EQUITY
Deposits
Demand		$	1,031,628				995,930				1,011,531				1,119,608				1,152,365
NOW			799,300				779,383				723,211				747,437				790,225
Savings			598,579				465,172				370,169				372,212				351,839
Total core deposits			2,429,507				2,240,485				2,104,911				2,239,257				2,294,429
Money market			653,231				677,642				695,591				740,192				806,871
Certificate of deposits			1,002,284				948,919				874,956				855,561				859,470
Total deposits			4,085,022				3,867,046				3,675,458				3,835,010				3,960,770
Advances from Federal Home Loan Bank			1,297,055				1,517,058				1,687,062				1,127,065				1,085,914
Short term borrowings			137,914				138,686				144,722				428,942				179,850
Secured borrowings (1)			—				—				—				—				111,754
Long term debt			29,654				29,923				30,192				37,378				36,832
Other liabilities			63,108				68,460				81,437				68,641				74,771
Total liabilities			5,612,753				5,621,173				5,618,871				5,497,036				5,449,891
Stockholder’s equity			562,956				565,949				564,163				551,891				550,723
Total liabilities and stockholder’s equity		$	6,175,709				6,187,122				6,183,034				6,048,927				6,000,614

Bank Operations Business Segment
Average Balance Sheet — Yield / Rate Analysis

		For the Three Months Ended
		March 31, 2007												March 31, 2006
(in thousands)		Average				Revenue/				Yield/				Average				Revenue/				Yield/
		Balance				Expense				Rate				Balance				Expense				Rate
Loans:
Residential real estate		$	2,181,478				29,511				5.41	%		$	2,043,309				25,712				5.03	%
Commercial real estate			1,420,944				29,493				8.30				1,557,880				30,827				7.92
Loan participations sold			—				—				—				125,293				2,401				7.77
Consumer			606,472				11,365				7.50				539,937				9,477				7.02
Commercial business			156,238				3,490				8.94				102,533				2,261				8.82
Small business			285,387				5,728				8.03				241,103				4,708				7.81
Total loans			4,650,519				79,587				6.85				4,610,055				75,386				6.54
Investments — tax exempt			396,374				5,802	(1)			5.85				393,159				5,731	(1)			5.83
Investments — taxable			619,614				9,696				6.26				588,072				8,233				5.60
Total interest earning assets			5,666,507				95,085				6.71	%			5,591,286				89,350				6.39	%
Goodwill and core deposit intangibles			77,138												78,693
Other non-interest earning assets			426,061												355,868
Total Assets		$	6,169,706											$	6,025,847
Deposits:
Savings		$	529,435				2,570				1.97	%		$	331,117				313				0.38	%
NOW			771,017				1,512				0.80				760,419				934				0.50
Money market			650,383				3,938				2.46				829,700				3,984				1.95
Certificate of deposit			961,716				10,982				4.63				843,866				7,523				3.62
Total interest bearing deposits			2,912,551				19,002				2.65				2,765,102				12,754				1.87
Short-term borrowed funds			203,984				2,633				5.23				245,326				2,643				4.37
Advances from FHLB			1,405,279				18,723				5.40				1,164,675				14,140				4.92
Secured borrowings			—				—				—				125,293				2,401				7.77
Long-term debt			29,634				626				8.57				37,819				748				8.02
Total interest bearing liabilities			4,551,448				40,984				3.65				4,338,215				32,686				3.06
Demand deposits			989,546												1,065,909
Non-interest bearing other liabilities			56,222												70,349
Total Liabilities			5,597,216												5,474,473
Stockholder’s equity			572,490												551,374
Total liabilities and stockholder’s equity		$	6,169,706											$	6,025,847
Net tax equivalent interest income/ net interest spread						$	54,101				3.06	%						$	56,664				3.33	%
Tax equivalent adjustment							(2,031	)											(2,006	)
Capitalized interest from real estate operations							—												480
Net interest income							52,070												55,138
Margin
Interest income/interest earning assets											6.71	%											6.39	%
Interest expense/interest earning assets											2.93												2.37
Net interest margin (tax equivalent)											3.78	%											4.02	%
Net interest margin (tax equivalent) excluding secured borrowings											3.78	%											4.11	%