BFC Financial Corporation Announces Financial Results For the Third Quarter 2006

FORT LAUDERDALE, Fla., Nov. 14  /PRNewswire-FirstCall/ -- BFC Financial Corporation (NYSE:BFF), a diversified holding company that invests in and acquires operating businesses in a variety of industries, today announced financial results for the third quarter 2006. For the quarter ended September 30, 2006, BFC Financial Corporation ("BFC" or "the Company") had a net loss allocable to common stock of $1.4 million or a diluted loss per share of ($0.04), compared with net income allocable to common stock of $1.9 million, or $0.05 per diluted share reported in the third quarter 2005. Year-to-date, the Company reported a net loss allocable to common stock of $2.1 million or a diluted loss per share of ($0.06), compared to net income allocable to common stock of $8.6 million, or $0.27 per diluted share reported for the nine months ended September 30, 2005.

As a holding company with limited operations, BFC's financial results primarily reflect the results of the operating companies in which it has its principal investments. The Company's results for the period reflect the lower earnings of its principal holdings, BankAtlantic Bancorp and Levitt Corporation.  Further, both companies are implementing strategic long-term initiatives that generally reduce shorter-term earnings performance.  Levitt Corporation's results were impacted by the adverse market conditions in the homebuilding industry, while BankAtlantic's results were impacted by the losses at its wholly-owned investment banking and brokerage subsidiary, Ryan Beck and higher operating expenses in connection with BankAtlantic's store expansion initiatives. While BankAtlantic Bancorp and Levitt Corporation anticipate their respective initiatives will position each company for future growth and improved profitability, these strategies have a negative impact on each company's current financial results.  As a long-term investor, BFC supports its portfolio companies' efforts to build and strengthen their respective businesses with a goal of achieving long-term sustainable earnings growth.

  Developments during the quarter at each of the companies include:

  BankAtlantic Bancorp:
  * BankAtlantic's 'Florida's Most Convenient Bank' initiatives produced
    continued growth in new customers, with 62,000 and 197,000 new low cost
    deposit accounts opened in the third quarter of 2006 and year-to-date
    2006, respectively, an increase of 21% and 27% over the number of
    accounts opened in the corresponding 2005 quarter. Balances of these new
    accounts have aggregated approximately $443 million year-to-date. At
    quarter end, "total bank" and "same store" low cost deposit balances
    increased 5.5% and 5.3%, respectively, compared to the third quarter
    2005, an increase of $110 million in low cost deposit balances. As noted
    in earlier quarters, growth in balances in new low cost accounts remains
    very strong, but declines in legacy balances have negatively impacted
    growth in net aggregate balances. Demand deposits declined slightly to
    27.5% of total deposits from 29.2% in the second quarter 2006. Year-
    over-year, low cost deposit balances rose to 57.3% of total deposits, up
    from 54.0% in the third quarter of 2005.
  * BankAtlantic previously announced its store expansion program for the
    next two years, including the anticipated opening of 40 new stores (bank
    branches) in the next 18-24 months. BankAtlantic also announced its
    plans to open at least four new full service stores in the greater
    Orlando area in 2007. The first two stores are expected to open during
    the first quarter, and its total expansion plan currently calls for
    opening more than 20 stores in the greater Orlando area over the next
    several years.
  * Ryan Beck was selected to act as selling agent in connection with the
    subscription offering of People's Mutual Holdings' and People's Bank's
    previously announced second step mutual conversion, according to a
    registration statement filed by People's Bank's proposed holding
    company, People's United Financial, Inc. on November 3, 2006. In
    addition, Ryan Beck will act as joint lead manager for the syndicated
    offering.

  Levitt Corporation:
  * Total revenue from sales of real estate in the homebuilding division for
    the third quarter of 2006 increased 10.8% to $122.6 million, up from
    $110.7 million earned in the corresponding 2005 period. During the third
    quarter of 2006, deliveries declined to 403 units versus 439 units
    delivered in the comparable 2005 quarter.
  * Net new orders decreased 19.3% to 196 units in the third quarter of 2006
    from 243 units in the comparable 2005 period, mirroring the sales trends
    recently reported by several other public home builders, while the
    cancellation rate (defined as cancellations divided by gross sales)
    increased to 36% from 21% in the third quarter 2005. Demand in Levitt's
    active adult communities, which constitute 67% of its unsold lot
    inventory, experienced continued softness in Florida as buyers appeared
    to remain concerned about their ability to sell their existing homes;
    however, sales at its projects in Atlanta and Myrtle Beach continue to
    meet expectations. Average selling prices for new orders in the third
    quarter of 2006 were $347,000, up from $340,000 in the comparable 2005
    period.
  * While homebuilding backlog was 6.5% lower at the end of the September
    2006 quarter with 1,592 homes in backlog versus the similar 2005 period
    with 1,703 homes in backlog, higher selling prices yielded a 12.1%
    increase in backlog value to $554.6 million versus $494.8 million in the
    third quarter of 2005. The average sales price of the homes in backlog
    for this quarter increased 19.6% to $348,000, up from $291,000 in the
    third quarter of 2005.
  * Levitt's margin percentage (defined as sales of real estate, minus cost
    of sales of real estate, divided by sales of real estate) was 19.2% for
    the third quarter of 2006, versus 21.2% in the comparable 2005 quarter
    and 20.5% in the second quarter of 2006. SG&A as a percent of total
    homebuilding revenues were approximately 17.3% in the quarter, versus
    12.3% in the third quarter of 2005. The increase reflected the effect of
    added compensation expense associated with higher average headcount and
    recruitment costs, advertising and costs associated with new communities
    that are not expected to generate revenue until 2007. Further, Levitt
    recorded a charge of $900,000 in the third quarter in connection with an
    approximate 11% reduction in workforce in July 2006, and other
    retirement costs and retention programs. Annual cash savings from the
    July workforce reduction are anticipated to total approximately $4.2
    million.
  * Revenue from land sales in the land division was $8.3 million for the
    third quarter compared to $17.9 million during the same 2005 period.
    During the quarter, 29 acres were sold with a margin of 42.7%.  Total
    SG&A increased to $4.3 million during the quarter from $2.4 million for
    the same 2005 period.  This increase reflects an additional headcount in
    support of new commercial development operations and at the
    Tradition(TM) South Carolina project, higher advertising and marketing
    costs, and an increase in property taxes.  The backlog in Levitt's land
    division at September 30, 2006 consisted of contracts for the sale of 69
    acres at Tradition(TM) Florida with a sales value of $20.3 million.
  * The Torrey Pines Institute for Molecular Studies (TPIMS) announced its
    intention to establish its Florida headquarters in Tradition Florida in
    Port St. Lucie, creating nearly 190 high-paying jobs over time and
    further cementing Florida's Treasure Coast as a destination for biotech
    industry. TPIMS will be the first major tenant in Tradition's planned
    employment corridor.
  * In October, Levitt and Sons(R) opened Seasons at Seven Hills, a 730-home
    active adult community in the Atlanta region within the Cousins
    Properties' multi-generational Seven Hills community.
  * Bluegreen Corporation, approximately 31% of which is owned by Levitt
    Corporation, announced sales of $172.5 million and net income of $21.9
    million for the 2006 third quarter, versus sales and net income for the
    2005 third quarter of $166.7 million and $18.3 million, respectively.
    Effective January 1, 2006, Bluegreen was required to adopt the American
    Institute of Certified Public Accountants' Statement of Position 04-2,
    "Accounting for Real Estate Time-Sharing Transactions (the "SOP"), which
    changed the rules for many aspects of timeshare accounting, including
    revenue recognition, inventory costing and incidental operations. As
    previously announced by Bluegreen, the adoption of the new accounting
    regulations adversely impacted Bluegreen's results by changing many
    aspects of timeshare accounting, including revenue recognition,
    inventory costing and accounting for incidental operations. As a result
    of this accounting change, recognition of a portion of Bluegreen's sales
    and profits from its Resorts division was shifted from the first half of
    2006 until the second half of the year. Bluegreen's results for its
    third quarter reflect the impact of this anticipated shift. Bluegreen's
    management continues to believe that its business and markets remain
    fundamentally strong and are demonstrating solid growth. On a pro forma,
    non-GAAP basis excluding the impact of the SOP, total sales and net
    income in the third quarter of 2006 were $217.2 million and $19.5
    million, respectively, versus the comparable 2005 period's sales and net
    income of $204.2 million and $18.3 million, respectively.

  Benihana, Inc.:
  * Benihana Inc. reported a 9.8% increase in company-wide comparable
    restaurant sales for fiscal year 2007 second quarter ended October 8,
    2006. Comparable restaurant sales for the Benihana teppanyaki
    restaurants increased 9.3%, while comparable restaurant sales rose 12.8%
    at RA Sushi and 10.3% at Haru, with eight and seven restaurants,
    respectively in their comparable restaurant base.
  * Total restaurant sales increased 7.9% to $58.6 million from $54.3
    million during the same quarter last year. During the second quarter
    ended October 8, 2006, Benihana teppanyaki restaurants represented
    approximately 74% of consolidated restaurant sales while RA Sushi and
    Haru accounted for 14% and 12% of consolidated restaurant sales,
    respectively. The year-ago period included approximately $0.5 million in
    revenue from the Sushi Doraku restaurant concept, which was sold in
    April 2006. Restaurant sales were negatively impacted by approximately
    $2.5 million, net during the second quarter of fiscal 2007 because of
    temporary closures under the Company's renovation program. There were a
    total of 840 store-operating weeks during the current second fiscal
    quarter compared with 855 store-operating weeks during last year's
    second fiscal quarter.
  * Benihana continues to grow its Japanese-themed restaurant concepts with
    its 77 restaurants nationwide, including 59 Benihana teppanyaki
    restaurants, seven Haru sushi restaurants and eleven RA Sushi Bar
    restaurants. In addition, a total of 17 franchised Benihana teppanyaki
    restaurants are now open in the U.S. and Latin America.
  * BFC's purchases in 2004 and 2005 of an aggregate of 800,000 shares of
    Benihana Convertible Preferred Stock represents an investment by BFC of
    $20 million which, based on NASDAQ closing stock price as of September
    29, 2006 was convertible into $30.5 million of Benihana Common Stock.
    The underlying closing price of the common stock will, of course,
    fluctuate from time to time. Our holdings in Benihana upon conversion
    would represent approximately 25% of Benihana's voting common stock and
    10% of Benihana's outstanding equity interest.

                    ***********************************



On June 22, 2006, BFC announced that its Class A common stock began trading on the NYSE Arca exchange ("NYSE Arca") under the symbol "BFF." BFC's Class A Common Stock had previously traded on the NASDAQ National Market since April 2003.

On October 27, 2006, BFC announced that its Board of Directors had approved the repurchase, through a share repurchase program, of up to 1,750,000 shares of its Class A Common Stock, which constitutes approximately 5 percent of its total common stock presently outstanding, at an aggregate cost of no more than $10 million.

Results by Segment:

The following table shows net income (loss) for each segment and earnings (loss) per share including the items discussed above for the three months and nine months ended September 30, 2006 and 2005 (in thousands, except per share data):

                                   Three Months Ended      Nine Months Ended
                                     2006       2005       2006        2005

  BFC Activities                  $ (2,170)  $ (3,133)  $ (5,489)  $(11,316)
  Financial Services                 2,338     16,260     17,172     60,675
  Homebuilding & Real
   Estate Development                2,972     10,708      1,575     46,578
  Eliminations                           -        (97)         -       (796)

                                     3,140     23,738     13,258     95,141

  Non-controlling interest           4,308     21,589     14,764     85,663
  (Loss) income from continuing
   operations                       (1,168)     2,149     (1,506)     9,478
  Discontinued operations, less
    income taxes                         -        (92)         -       (290)
  Net (loss) income                 (1,168)     2,057     (1,506)     9,188
  5% Preferred Stock dividends         187        187        562        562
  Net (loss) income allocable to
   common stock                   $ (1,355)  $  1,870   $ (2,068)  $  8,626

  Basic (loss) earnings per
   share from  continuing
   operations                     $  (0.04)  $   0.06   $  (0.06)  $   0.32
  Basic (loss) earnings per
   share from discontinued
   operations                     $      -   $      -   $      -   $  (0.01)
  Basic earnings (loss) per
   share                          $  (0.04)  $   0.06   $  (0.06)  $   0.31

  Diluted (loss) per share from
   continuing operations          $  (0.04)  $   0.05   $  (0.06)  $   0.28
  Diluted (loss) per share from
   discontinued operations        $      -   $      -   $      -   $  (0.01)
  Diluted (loss) earnings per
   share                          $  (0.04)  $   0.05   $  (0.06)  $   0.27

  Basic weighted average number
   of common shares outstanding     33,427     31,751     33,181     27,983
  Diluted weighted average
   number of common and common
   equivalent shares outstanding    33,427     34,121     33,181     30,471


  * The "BFC Activities" segment includes BFC's real estate owned, loans
    receivable that relate to previously owned properties, its investment in
    Benihana Convertible Preferred Stock and other securities and
    investments, including the operations of its wholly-owned subsidiary
    Cypress Creek Capital, BFC's overhead and interest expense and the
    financial results of a venture partnership that BFC controls. Since BFC
    is a holding company whose principal activities consist of managing
    investments and seeking and evaluating potential new investments, BFC
    itself has no significant direct revenue or cash-generating operations.
    Accordingly, the "BFC Activities" segment will generally reflect a loss
    as the current amount of dividends, interest and fees from investments
    do not currently cover BFC parent company operating costs.
  * The "Financial Services" segment includes BankAtlantic Bancorp and its
    subsidiaries, BankAtlantic and Ryan Beck Holdings, Inc.
  * The "Homebuilding & Real Estate Development" segment includes Levitt
    Corporation and its subsidiaries, Levitt and Sons(R) and Core
    Communities, and Levitt's investment in Bluegreen Corporation.
  * "Noncontrolling Interest" represents that portion of a consolidated
    entity that is owned by others. Both BankAtlantic Bancorp and Levitt
    Corporation are consolidated in BFC's financial statements because of
    BFC's voting control ownership position in each of those companies, even
    though BFC's equity ownership is less than a majority in each entity. At
    September 30, 2006, BFC owned 21.6% of the economic interest and held
    54.9% of the voting control of BankAtlantic Bancorp and 16.6% of the
    economic interest and 52.9% of the voting control of Levitt Corporation.

  Shareholders' Equity or Book Value:


Shareholders' equity or book value decreased from $183 million as of December 31, 2005 to $177 million as of September 30, 2006. This decrease was primarily due to the retirement of Common Stock relating to the exercise of stock options, the net loss for the nine months ended September 30, 2006, the effects of subsidiaries' capital transactions and cash dividends on the 5% Cumulative Convertible Preferred Stock partially offset by the retirement of common stock received as consideration for the exercise price and minimum withholding tax amounts upon the exercise of options.

Market Value of BankAtlantic Bancorp and Levitt Corporation:

BFC's holdings include 13.2 million shares of common stock of BankAtlantic Bancorp and 3.3 million shares of common stock of Levitt Corporation.  The market value of BFC's holdings in these two companies, based upon NYSE closing prices, which will fluctuate from time to time, was $227 million at September 29, 2006.  BFC also owns 800,000 shares of Convertible Preferred Stock in Benihana, Inc., which is convertible into approximately 1.1 million shares of Common Stock. Based on the closing price of Benihana, BFC's investment, if converted, was worth approximately $31 million as of September 29, 2006.

Other:

BFC's quarterly report on Form 10-Q for the quarter ended September 30, 2006 contains additional information and was filed with the Securities and Exchange Commission on November 9, 2006. The Form 10-Q for the quarter ended September 30, 2006 will be posted on BFC's website, which can be accessed via http://www.bfcfinancial.com/.

About BFC Financial Corporation:

BFC Financial Corporation (NYSE Arca: BFF) is a diversified holding company that invests in and acquires private and public companies in different industries. BFC is typically a long-term, "buy and hold" investor whose direct and indirect, diverse ownership interests span a variety of business sectors, including consumer and commercial banking; brokerage and investment banking services; homebuilding; development of master-planned communities; the hospitality and leisure sector through the development, marketing and sales of vacation resorts on a time-share, vacation club model; the restaurant and family dining business, and real estate investment banking and investment services.  BFC's current holdings include BankAtlantic Bancorp and its subsidiaries, BankAtlantic and Ryan Beck Holdings, Inc.; Levitt Corporation, which includes its subsidiaries Levitt and Sons(R), Core Communities and its 31% ownership in Bluegreen Corporation; a minority interest in the renowned national restaurant chain, Benihana, Inc., and Cypress Creek Capital, a wholly-owned subsidiary.

For further information, please visit our website at: http://www.bfcfinancial.com/.  To receive future news releases or announcements directly via Email, please click on the Email Broadcast Sign Up button.

   BFC Contact Info:
   Investor and Corporate Communications:
   Sharon Lyn, Vice President
   Email: 
   Investor Relations:
   Leo Hinkley, Senior Vice President
   Email: 

   Mailing Address and Telephone:
   BFC Financial Corporation
   Attn: Investor Relations
   2100 West Cypress Creek Road
   Fort Lauderdale, FL 33309
   Phone: [phone]
   Fax: [phone]



Matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. Past performance is no indication of current or future results. These forward-looking statements are based largely on the expectations of BFC 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 including the risks and uncertainties with respect to its current investments and any future investments, that resources may not be available to make desired investments or acquisitions; that the performance of the Company and its portfolio companies are subject to general economic conditions and the condition of their individual industries; that expansion, strategic plans and initiatives pursued by its portfolio companies may not be successful, and those disclosed in the Company's filings with the Securities and Exchange Commission. Moreover, this press release contains only summary and partial financial data for the periods in question. More complete information is contained in our 2005 Annual Report on Form 10-K and BFC's quarterly reports on Form 10-Q filed with the Securities and Exchange Commission and available on BFC's website at http://www.bfcfinancial.com/. Additional information relating to BFC's publicly-traded portfolio companies, including the risks and uncertainties relating to their respective businesses, is contained in reports filed by those companies with the Securities and Exchange Commission at http://www.sec.gov/. 

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DATASOURCE: BFC Financial Corporation



CONTACT:  Investor and Corporate Communications, Sharon Lyn, Vice

President, , or Investor, Leo Hinkley, Senior Vice

President, , both of BFC Financial

Corporation



Web site:  http://www.bfcfinancial.com/

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