BankAtlantic Bancorp Reports Financial Results for the Third Quarter, 2008

  
    
  
  
    
      BankAtlantic Bancorp, Inc. (NYSE:BBX) today reported a net loss of 
      ($6.1) million, or ($0.54) per diluted share, for the quarter ended 
      September 30, 2008, representing a $23.5 million or 80.0% improvement 
      compared to the net loss of ($29.6) million or ($2.61) per diluted share 
      for the third quarter of 2007. BankAtlantic Bancorp (“the 
      Company”) reported a net loss of ($19.4) 
      million, or ($1.73) per diluted share, for the second quarter of 2008.
    
    
      The Company reported a net loss from continuing operations (excludes 
      additional proceeds received from the sale of Ryan Beck in February 
      2007, reflected as discontinued operations) of ($11.0) million, or 
      ($0.98) per diluted share, for the quarter ended September 30, 2008, 
      representing a 62.9% improvement compared to the net loss from 
      continuing operations of ($29.6) million, or ($2.61) per diluted share, 
      for the comparable quarter of 2007. The Company reported a net loss from 
      continuing operations of ($19.4) million, or ($1.73) per diluted share, 
      for the second quarter of 2008.
    
    
      BankAtlantic, the banking subsidiary of BankAtlantic Bancorp, reported a 
      net loss of ($2.1) million for the third quarter of 2008, compared to a 
      net loss of ($27.1) million for the third quarter of 2007, and a net 
      loss of ($14.1) million for the second quarter of 2008, an 85.1% 
      improvement.
    
    
      BankAtlantic Bancorp’s Chairman and Chief 
      Executive Officer, Alan B. Levan, commented, “In 
      the face of extremely challenging economic conditions and unprecedented 
      turbulence in the financial sector, we are pleased with the continued 
      improvements and efficiencies produced during the third quarter and over 
      the last nine months. We believe this quarter’s 
      results are a strong reflection of the improvement in BankAtlantic’s 
      core operations. As discussed in detail below, as of September 30, 2008:
    
    
      
        “BankAtlantic continues to maintain 
        consistently solid capital levels, exceeding all regulatory ‘well 
        capitalized’ thresholds;
      
      
        “Third quarter net charge-offs declined 
        from $22.8 million in the second quarter of 2008 to $14.9 million, a 
        68.3% and 34.5% improvement over the first and second quarters of 
        2008, respectively. Likewise, the third quarter provision for loan 
        losses of $22.9 million was significantly lower than provisions for 
        the first and second quarters of 2008 and for the third quarter of 
        2007;
      
      
        “Total delinquencies during the 2008 third 
        quarter, excluding non-accrual loans and certain Commercial Real 
        Estate loan renewals in process, increased 8 basis points from the 
        second quarter 2008;
      
      
        “Net interest margin remained relatively 
        stable, declining two basis points for the third quarter of 2008 
        compared to the second quarter of 2008;
      
      
        “Our savings from expense reduction 
        initiatives in the third quarter of 2008 yielded a 7.6% improvement 
        over the second quarter of 2008, and an 18.0% improvement over the 
        third quarter of 2007;
      
    
    
      “BankAtlantic has experienced a number of 
      economic cycles since 1952, and while no cycle or downturn is exactly 
      the same, BankAtlantic emerged from each a more efficient, more 
      profitable company. Again, we are working hard to position our company 
      for improved operating performance and steady growth, while maintaining 
      prudent risk management policies. BankAtlantic’s 
      lending practices never included subprime, option-arm or negative 
      amortization products. Additionally, BankAtlantic’s 
      investment portfolio does not include credit default swaps, commercial 
      paper, collateralized debt obligations (CDO’s), 
      structured investment vehicles (SIV’s), or 
      Fannie Mae or Freddie Mac equity or debt securities.
    
    
      “As banks and their names change in our 
      markets, BankAtlantic remains ready to serve all Floridians. Customers 
      do have a choice as to who their next bank is. BankAtlantic, ‘Florida’s 
      Most Convenient Bank’, is here with a 
      deep commitment to provide seven-day convenience, unparalleled service, 
      and an attractive mix of banking products and services,” 
      concluded Alan B. Levan.
    
    
      BankAtlantic Highlights:
    
    
      BankAtlantic Performance:
    
    
      Net Income – BankAtlantic’s 
      Chief Executive Officer, Jarett S. Levan, commented, “We 
      continue to make progress in improving our operations, even in the midst 
      of a recessionary economy and despite the losses associated with our 
      loan portfolios.
    
    
      “Year-to-date, pre-tax core operating 
      earnings, which exclude the impact of loan loss provisions and 
      impairment, restructuring and exit activity expenses, were $54.0 million 
      versus $42.7 million at September 30, 2007, representing a 26.4% 
      improvement. The third quarter 2008 pre-tax core operating earnings were 
      $18.8 million compared to the $20.3 million reported for the second 
      quarter of 2008, with the variance due primarily to $2.0 million in net 
      securities activities in the second quarter of 2008 that did not recur 
      in the third quarter and higher professional fees in the 2008 third 
      quarter. Loan loss provisions, impairment, restructuring and exit 
      activity expenses were ($23.4) million and ($43.8) million for the three 
      months ended September 30, 2008 and June 30, 2008, respectively, and 
      aggregated ($110.0) million and ($76.0) million for the nine months 
      ended September 30, 2008 and 2007, respectively. Details for each period 
      are provided in the supplementary financial statements included with 
      this press release. We believe these improvements reflect management’s 
      focus on reducing operating expenses and improving results in our core 
      operations in spite of the challenges in the current economic 
      environment.
    
    
      “BankAtlantic is in the process of completing 
      its annual goodwill impairment analysis. Although the analysis is not 
      yet complete and may not be complete until the fourth quarter, the 
      initial review process indicates that based on a combination of factors, 
      including the economic environment and a sustained decline in the 
      Company's stock price, goodwill in one or more of BankAtlantic’s 
      reporting units might be determined to be impaired. As a result of the 
      initial review, additional analysis is required and the Company is 
      performing that analysis. While BankAtlantic carries approximately $70.5 
      million of goodwill on its balance sheet, any potential impairment 
      charge related to goodwill would have no impact whatsoever on 
      BankAtlantic’s operations, cash balances, 
      liquidity or capital levels.
    
    
      Capital Strength – “BankAtlantic 
      continues to be well-capitalized. At September 30, 2008, BankAtlantic’s 
      Core, Tier I and Total Capital ratios were 6.89%, 9.95% and 11.75%, 
      respectively, consistent with expectations and well in excess of the 
      regulatory well-capitalized thresholds of 5.0%, 6.0% and 10.0%. 
      BankAtlantic’s ratio of non-performing assets 
      to common equity plus reserves was 17.05% at September 30, 2008. 
      BankAtlantic Bancorp contributed $10.0 million in capital to 
      BankAtlantic during the third quarter of 2008, and has contributed $65.0 
      million of capital year-to-date, offsetting the impact of credit losses 
      and further strengthening the Bank’s already 
      well-capitalized base.
    
    
      Deposits and Liquidity – “BankAtlantic’s 
      deposit base continues to be a strong and stable funding source, with 
      over 68% of our $3.9 billion in total deposits at September 30, 2008 
      comprised of non-CD balances, with an average cost of deposits for the 
      third quarter 2008 of 1.57%. Historically, the third quarter has been a 
      soft deposit growth period for BankAtlantic due to the seasonality of 
      our primary markets and total deposit balances declined approximately 
      1.7% between the second and third quarter 2008, materially consistent 
      with the 1.2% decline in total deposits between the second and third 
      quarter 2007. We believe the decline is a result of normal seasonality 
      factors combined with competitive deposit pricing in our marketplace and 
      the overall impact of the economic environment on our depositor base.
    
    
      “Overall liquidity remains strong. We 
      effectively reduced our period-end borrowings at September 30, 2008 
      through a $256.2 million reduction of assets, primarily through 
      scheduled runoff of residential loans and tax certificates. Further, 
      BankAtlantic’s brokered deposit balances at 
      September 30, 2008 amounted to only 4.0% of its total deposits, 
      significantly below other Florida financial institutions.
    
    
      Net Interest Margin – “Net 
      interest income for the third quarter of 2008 improved to $51.2 million 
      compared to $49.9 million in the previous quarter and $49.2 million in 
      the corresponding 2007 quarter. The tax equivalent net interest margin 
      was 3.56% in the third quarter of 2008, compared to 3.58% in the second 
      quarter of 2008, and 3.59% in the corresponding quarter of 2007. 
      Additionally, average earning assets increased $200.6 million and $20.1 
      million compared to the second quarter of 2008 and the comparable 
      quarter of 2007, respectively, due primarily to seasonal growth in tax 
      certificates, offset by our decision to slow loan growth as part of our 
      credit risk management initiatives. Although we experienced considerable 
      pricing pressures from competitors and some shifts in our deposit mix to 
      higher cost deposits during the quarter, our net interest spread 
      remained stable at 3.16% in the third quarter 2008 compared to 3.15% in 
      the second quarter 2008.
    
    
      Non-interest income – “Non-interest 
      income, of which approximately 70.5% is associated with our core deposit 
      account base, continues to provide a consistent and stable source of 
      income for BankAtlantic. Non-interest income for the third quarter of 
      2008 was $33.9 million, a slight decrease from the second quarter of 
      2008 and third quarter of 2007. The decline was due primarily to 
      securities activities in prior periods that did not recur in the third 
      quarter of 2008, as well as a focused attempt to reduce fee and check 
      losses. We believe this initiative will have a net, long term benefit to 
      the Bank, even though the initial impact to fee income is slightly 
      negative. Total non-interest income for the third quarter was 39.9% of 
      total revenues.
    
    
      Non-interest expense – “Year-to-date, 
      excluding impairment, restructuring and exit activity charges of $6.4 
      million in 2008 and $14.7 million in 2007, non-interest expense improved 
      $15.7 million or 7.3% from the 2007 year-to-date period. Excluding 
      impairment, restructuring and exit activity charges of $11.0 million in 
      the third quarter of 2007 and of $0.5 million in the third quarter of 
      2008, non-interest expense during the third quarter of 2008 was $66.3 
      million, an improvement of $4.2 million or 6.0% from the comparable 2007 
      quarter. Total non-interest expense was $66.8 million in the third 
      quarter of 2008, compared to $81.5 million in the third quarter of 2007 
      and $72.3 million in the second quarter of 2008.
    
    
      Credit Risk Management:
    
    
      Credit – “BankAtlantic 
      experienced third quarter net charge-offs of $14.9 million, representing 
      a 68.3% and 34.5% improvement over the first and second quarters of 
      2008, respectively. The Commercial Real Estate charge-offs in the third 
      quarter amounted to $5.0 million, the majority of which related to one 
      loan.
    
    
      “The provision for loan losses in the third 
      quarter of 2008 was $22.9 million, significantly lower than the 
      provisions of $37.8 million for the second quarter of 2008 and $48.9 
      million for the third quarter of 2007. BankAtlantic’s 
      allowance for loan losses increased to $106.4 million at September 30, 
      2008, representing 2.40% of total loans, compared to 2.21% at June 30, 
      2008 and 1.97% at September 30, 2007. The increase in the allowance was 
      primarily related to increases in our Consumer loan portfolio reserves. 
      The ratio of the allowance to non-accrual loans at September 30, 2008 
      was 118.6%. Total non-accrual loans increased approximately $12 million 
      in the third quarter of 2008 compared to the second quarter of 2008, in 
      part due to backlogs in foreclosure activity in the residential 
      portfolio. Commercial Real Estate non-accrual loan balances remained 
      relatively unchanged from the prior quarter.
    
    
      “Total delinquencies, excluding non-accrual 
      loans and certain Commercial Real Estate renewals in process, increased 
      8 basis points from the second quarter of 2008. Delinquencies in the 
      Commercial Real Estate and Small Business portfolios remained unchanged 
      from the preceding quarter, and the Consumer portfolio improved 37 basis 
      points. The Purchased Residential portfolio delinquencies, excluding 
      non-accrual loans, increased 29 basis points to 0.73% during the 
      quarter. However, this Residential portfolio has favorable loan to 
      values and continues to experience low losses. (See details of 
      charge-offs, non-accrual loans and delinquencies in the Capital & Credit 
      Highlights tables below.)
    
    
      Commercial Real Estate Loans – “The 
      Bank’s Commercial Real Estate loan 
      portfolio at September 30, 2008 totaled $1.2 billion, including the 
      following loan categories:
    
    
      “Builder land bank loans: This 
      category of 7 loans aggregates $63.1 million; 2 of the loans, totaling 
      $17.6 million, are on non-accrual.
    
    
      “Land acquisition and development 
      loans: This category of 26 loans aggregates $178.1 million; one 
      loan, totaling $3.2 million, is on non-accrual.
    
    
      “Land acquisition, development and 
      construction loans: This category of 15 loans aggregates $77.7 
      million; 2 of these loans, totaling $17.3 million, are on non-accrual.
    
    
      “These non-accrual commercial real estate 
      loans are reflected on the Bank’s financial 
      statements at approximately 46% of their principal balances before 
      charge-offs or specific reserves. These three loan categories that we 
      identified in the third quarter of 2007 continue to be the source for 
      the majority of the Commercial Real Estate non accruals and related 
      charge-offs. We expect continued pressure on this portfolio throughout 
      2008, including the possibility of additional non-accrual loans, 
      provisions and charge-offs.
    
    
      Purchased Residential Loans – “Our 
      Purchased Residential loan portfolio was $1.9 billion at quarter-end, 
      representing 43.4% of the Bank’s total loans. 
      This portfolio consists of approximately 6,300 first mortgage loans 
      secured by properties in every state in the nation. As we previously 
      stated, our standard products in this portfolio have never included 
      purchased or originated subprime, negative amortizing, or option-arm 
      loans. The portfolio is geographically diverse, the weighted average 
      FICO score of borrowers in this portfolio was 742 at the time of 
      origination, the weighted average loan-to-value of the loans in this 
      portfolio at the time of origination was 68.9%, and the original back 
      end debt ratio was a weighted average of 33.4%. As of September 30, 
      2008, the average time to payment reset was 60 months. As indicated 
      previously, while this portfolio is experiencing higher delinquencies 
      than in the past, we continue to believe its overall performance remains 
      strong.
    
    
      Consumer Loans - “Our Consumer loan 
      portfolio had outstanding balances of $736.0 million at quarter-end, 
      with home equity loans representing 96.6% of this portfolio. None of our 
      home equity loans have been purchased from others; 100% have been 
      originated in our local markets with central underwriting. Approximately 
      20% of this portfolio is secured by first mortgages. The loans in this 
      portfolio have an updated weighted average loan-to-value, inclusive of 
      first mortgages, of 83.8%, and a weighted average Beacon score of 
      borrowers of approximately 737. We continue to evaluate our consumer 
      loan available commitments and attempt to reduce overall line exposure 
      where appropriate. Partially as a result of this action, consumer loan 
      outstanding balances have remained relatively unchanged since the second 
      quarter of 2008. However, with these efforts, we anticipate that we will 
      continue to experience elevated levels of delinquencies and charge-offs 
      in this portfolio during the balance of the year, based on current 
      economic conditions.”
    
    
      BankAtlantic Bancorp:
    
    
      BankAtlantic Bancorp’s Chairman and CEO, Alan 
      B. Levan, further commented, “During the 
      third quarter, 2008, the Company generated approximately $34 million in 
      incremental cash to further support its operations and BankAtlantic. The 
      cash was generated through the following:
    
    
      
        Sale of all of the warrants to acquire Stifel Financial Corp. common 
        stock for $14.4 million, resulting in a net $1.1 million gain;
      
      
        Sale of all of the Stifel Financial Corp. common stock received on 
        August 14, 2008 from Stifel as a partial pre-payment of the private 
        client contingent payment earned as part of the sale of Ryan Beck 
        Holdings, Inc. to Stifel in February 2007. The stock sale generated 
        cash of $9.6 million and a net gain of $22,000; and
      
      
        Receipt of a $10.3 million tax refund;
      
    
    
      “During the quarter, the Company made a $10 
      million capital contribution to BankAtlantic. At September 30, 2008, 
      BankAtlantic Bancorp had $46.8 million in cash and investments.
    
    
      Asset Workout Subsidiary – “As 
      previously announced, during the first quarter of 2008, BankAtlantic 
      Bancorp formed a wholly-owned asset workout subsidiary and purchased 
      certain non-accrual loans from BankAtlantic. These assets are no longer 
      held by BankAtlantic, and any gain or loss associated with these assets 
      will have no impact on BankAtlantic’s 
      operations or capital, but will be included in BankAtlantic Bancorp’s 
      consolidated results. These assets, as with all other assets and 
      liabilities at BankAtlantic Bancorp, should not be combined with those 
      of BankAtlantic when evaluating and comparing metrics for BankAtlantic 
      as the insured financial institution.
    
    
      “At September 30, 2008, the loans held by the 
      workout subsidiary totaled $84.4 million with specific loan reserves of 
      $7.7 million. During the 2008 third quarter, primarily as a result of 
      updated valuations, these loans were written-down by $8.3 million. The 
      breakdown of these loans held by the Company’s 
      asset workout subsidiary is as follows:
    
    
      “Builder land bank loans: Four 
      non-accrual loans aggregating $22.0 million.
    
    
      “Land acquisition and development 
      loans: Four non-accrual loans aggregating $19.5 million.
    
    
      “Land acquisition, development and 
      construction loans: Nine non-accrual loans aggregating $29.2 million.
    
    
      “Other Commercial real estate loans: 
      Three non-accrual loans aggregating $5.8 million.
    
    
      “Commercial business loans: 
      Three non-accrual loans aggregating $5.6 million and one performing loan 
      in the amount of $2.3 million.
    
    
      “These commercial real estate non-accrual 
      loans are carried on BankAtlantic Bancorp’s 
      books at approximately 60% of their principal balances prior to 
      charge-offs or specific reserves. While BankAtlantic Bancorp may 
      consider pursuing a possible joint venture or sale of its interests in 
      the workout subsidiary in the future, there is no assurance this will 
      occur.
    
    
      Cash Dividend – “BankAtlantic 
      Bancorp’s Board of Directors declared a cash 
      dividend of $0.025 per share to all shareholders of record of its Class 
      A and Class B Common Stock at the close of trading on October 3rd, 
      2008. This quarter’s dividend declaration 
      marked BankAtlantic Bancorp’s 61st 
      consecutive quarterly dividend payment,” 
      concluded Alan B. Levan.
    
    
      Financial Highlights:
    
    
      All per share amounts presented below have been restated to reflect the 
      one-for-five reverse stock split effected by BankAtlantic Bancorp on 
      September 26, 2008
    
    
      Third Quarter, 2008 Compared to Third 
      Quarter, 2007
    
    
      BankAtlantic Bancorp - consolidated:
    
    
      
        (Loss) from continuing operations of ($11.0) million versus ($29.6) 
        million
      
      
        Diluted (loss) per share from continuing operations of ($0.98) versus 
        ($2.61)
      
      
        Book value per share of $35.64 versus $42.10
      
      
        Tangible book value of $29.47 versus $34.46
      
      
        Closing market price on October 28, 2008 of $5.00 versus $20.65 on 
        October 29, 2007
      
    
    
      BankAtlantic:
    
    
      
        Business segment (loss) of ($2.1) million versus ($27.1) million
      
      
        Pre-tax operating earnings of $18.8 million versus $14.6 million- 
        pre-tax operating earnings excludes the impact of provision for loan 
        losses, impairments, restructuring and exit activities of ($23.4) 
        million for the 2008 quarter and ($60.0) million for the 2007 quarter
      
      
        Over 33,000 new core deposit accounts opened
      
      
        Tax equivalent net interest margin of 3.56% versus 3.59%
      
      
        Non-interest income of $33.9 million versus $35.9 million
      
      
        Non-interest expense of $66.3 million versus $70.5 million, a decrease 
        of 6.0%, before the impairment, restructuring and exit activities of 
        $522,000 in 2008 and $11.0 million in 2007
      
    
    
      Third Quarter, 2008 Compared to Second 
      Quarter, 2008
    
    
      BankAtlantic Bancorp - consolidated:
    
    
      
        (Loss) from continuing operations of ($11.0) million versus ($19.4) 
        million
      
      
        Diluted (loss) per share from continuing operations of ($0.98) versus 
        ($1.73)
      
    
    
      BankAtlantic:
    
    
      
        Business segment (loss) of ($2.1) million versus ($14.1) million
      
      
        Pre-tax operating earnings of $18.8 million versus $20.3 million- 
        pre-tax operating earnings excludes the impact of provision for loan 
        losses, impairments, restructuring and exit activities of ($23.4) 
        million for the third quarter and ($43.8) million for the second 
        quarter
      
      
        Tax equivalent net interest margin of 3.56% versus 3.58%
      
      
        Non-interest income of $33.9 million versus $36.7 million
      
      
        Non-interest expense of $66.3 million versus $66.4 million, before the 
        impairment, restructuring and exit activities of $522,000 in the third 
        quarter and $6.0 million during the second quarter
      
    
    
      Year-to-date 2008 Compared to 
      Year-to-date 2007
    
    
      BankAtlantic Bancorp - consolidated:
    
    
      
        (Loss) from continuing operations of ($54.9) million versus ($20.1) 
        million
      
      
        Diluted (loss) per share from continuing operations of ($4.89) versus 
        ($1.71)
      
    
    
      BankAtlantic:
    
    
      
        Business segment (loss) of ($33.1) million versus ($16.1) million
      
      
        Pre-tax operating earnings of $54.0 million versus $42.7 million- 
        pre-tax operating earnings excludes the impact of provision for loan 
        losses, impairments, restructuring and exit activities of ($110.0) 
        million year-to-date 2008 and ($76.0) million year-to-date 2007
      
      
        Nearly 136,000 new core deposit accounts opened
      
      
        Non-interest income of $106.2 million versus $107.6 million, a 
        decrease of 1.29%
      
      
        Non-interest expense of $201.4 million versus $217.1 million, a 
        decrease of 7.3%, before the $6.4 million and $14.7 million of 
        impairment, restructuring and exit activities during the 2008 and 2007 
        periods
      
    
    
      Third Quarter, 2008 Capital and Credit 
      Highlights:
    
    
      
        
          
            Capital Ratios (BankAtlantic)
          
        
      
      
        
          Capital Ratios
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
          9/30/2008
        
        
           
        
        
          6/30/2008
        
        
           
        
        
          3/31/2008
        
        
           
        
        
          12/31/2007
        
        
           
        
        
          9/30/2007
        
      
      
        
          Total Risk-Based
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
          11.75%
        
        
           
        
        
          11.77%
        
        
           
        
        
          11.83%
        
        
           
        
        
          11.63%
        
        
           
        
        
          11.93%
        
      
      
        
          Tier 1 Risk-Based
        
        
           
        
        
          
             
          
        
        
           
        
        
           
        
        
           
        
        
          9.95%
        
        
           
        
        
          9.99%
        
        
           
        
        
          10.04%
        
        
           
        
        
          9.85%
        
        
           
        
        
          10.17%
        
      
      
        
          Core
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
          6.89%
        
        
           
        
        
          6.82%
        
        
           
        
        
          6.87%
        
        
           
        
        
          6.94%
        
        
           
        
        
          7.20%
        
      
    
    
      
        
          
            Net Charge-offs, for the three-months ended:
          
        
      
      
        
          ($ in thousands)
        
        
           
        
        
          9/30/2008
        
        
           
        
        
          6/30/2008
        
        
           
        
        
          3/31/2008
        
        
           
        
        
          12/31/2007
        
        
           
        
        
          9/30/2007
        
      
      
        
          Commercial Real Estate
        
        
           
        
        
          $4,965
        
        
           
        
        
          $14,501
        
        
           
        
        
          $40,591
        
        
           
        
        
          $3,118
        
        
           
        
        
          $9,444
        
      
      
        
          Consumer
        
        
           
        
        
          7,621
        
        
           
        
        
          7,095
        
        
           
        
        
          4,748
        
        
           
        
        
          4,045
        
        
           
        
        
          1,569
        
      
      
        
          Small Business
        
        
           
        
        
          1,334
        
        
           
        
        
          345
        
        
           
        
        
          1,135
        
        
           
        
        
          449
        
        
           
        
        
          358
        
      
      
        
          Purchased Residential
        
        
           
        
        
          753
        
        
           
        
        
          761
        
        
           
        
        
          584
        
        
           
        
        
          216
        
        
           
        
        
          0
        
      
      
        
          CRA Residential
        
        
           
        
        
          249
        
        
           
        
        
          74
        
        
           
        
        
          40
        
        
           
        
        
          39
        
        
           
        
        
          3
        
      
      
        
          Commercial Business
        
        
           
        
        
          (9)
        
        
           
        
        
          (3)
        
        
           
        
        
          (26)
        
        
           
        
        
          (14)
        
        
           
        
        
          (29)
        
      
      
        
          Total BankAtlantic
        
        
           
        
        
          $14,913
        
        
           
        
        
          $22,773
        
        
           
        
        
          $47,072
        
        
           
        
        
          $7,853
        
        
           
        
        
          $11,345
        
      
      
        
          Parent-Workout Sub
        
        
           
        
        
          8,290
        
        
           
        
        
          8,184
        
        
           
        
        
          na
        
        
           
        
        
          na
        
        
           
        
        
          na
        
      
      
        
          Consolidated Total
        
        
           
        
        
          $23,203
        
        
           
        
        
          $30,957
        
        
           
        
        
          $47,072
        
        
           
        
        
          $7,853
        
        
           
        
        
          $11,345
        
      
    
    
      
        
          
            Non-accrual loans, at period-end:
          
        
      
      
        
          ($ in thousands)
        
        
           
        
        
          9/30/2008
        
        
           
        
        
          6/30/2008
        
        
           
        
        
          3/31/2008
        
        
           
        
        
          12/31/2007
        
        
           
        
        
          9/30/2007
        
      
      
        
          Commercial Real Estate
        
        
           
        
        
          $56,419
        
        
           
        
        
          $54,033
        
        
           
        
        
          $35,381
        
        
           
        
        
          $159,278
        
        
           
        
        
          $156,299
        
      
      
        
          Consumer
        
        
           
        
        
          5,867
        
        
           
        
        
          4,495
        
        
           
        
        
          4,374
        
        
           
        
        
          3,218
        
        
           
        
        
          3,205
        
      
      
        
          Small Business
        
        
           
        
        
          3,911
        
        
           
        
        
          1,165
        
        
           
        
        
          893
        
        
           
        
        
          883
        
        
           
        
        
          533
        
      
      
        
          Purchased Residential
        
        
           
        
        
          21,266
        
        
           
        
        
          16,721
        
        
           
        
        
          13,236
        
        
           
        
        
          6,895
        
        
           
        
        
          4,113
        
      
      
        
          CRA Residential
        
        
           
        
        
          2,279
        
        
           
        
        
          1,487
        
        
           
        
        
          1,906
        
        
           
        
        
          1,783
        
        
           
        
        
          1,219
        
      
      
        
          Commercial Business
        
        
           
        
        
          0
        
        
           
        
        
          0
        
        
           
        
        
          0
        
        
           
        
        
          6,534
        
        
           
        
        
          0
        
      
      
        
          Total BankAtlantic
        
        
           
        
        
          $89,742
        
        
           
        
        
          $77,901
        
        
           
        
        
          $55,790
        
        
           
        
        
          $178,591
        
        
           
        
        
          $165,369
        
      
      
        
          Parent-Workout Sub
        
        
           
        
        
          82,059
        
        
           
        
        
          90,412
        
        
           
        
        
          101,493
        
        
           
        
        
          na
        
        
           
        
        
          na
        
      
      
        
          Consolidated Total
        
        
           
        
        
          $171,801
        
        
           
        
        
          $168,313
        
        
           
        
        
          $157,283
        
        
           
        
        
          $178,591
        
        
           
        
        
          $165,369
        
      
    
    
      
        
          
            Delinquencies, excluding non-accrual loans, at period-end:
          
        
      
      
        
          
            Loan Principal
          
          
            Balances at 9/30/08
          
          
            ($ in thousands)
          
        
        
           
        
        
           
        
        
          
            9/30/
          
          
            2008
          
        
        
           
        
        
          
            6/30/
          
          
            2008
          
        
        
           
        
        
          
            3/31/
          
          
            2008
          
        
        
           
        
        
          
            12/31/
          
          
            2007
          
        
        
           
        
        
          
            9/30/
          
          
            2007
          
        
      
      
        
          $1,232,490
        
        
           
        
        
          
            Commercial
          
          
            Real Estate
          
        
        
          
            0.41%
          
        
        
          
            (a)
          
        
        
          0.42%
        
        
           
        
        
          1.97%
        
        
           
        
        
          0.00%
        
        
           
        
        
          0.43%
        
      
      
        
          721,218
        
        
           
        
        
          Consumer
        
        
          1.17%
        
        
           
        
        
          1.54%
        
        
           
        
        
          1.14%
        
        
           
        
        
          1.08%
        
        
           
        
        
          0.90%
        
      
      
        
          321,941
        
        
           
        
        
          Small Business
        
        
          0.95%
        
        
           
        
        
          0.93%
        
        
           
        
        
          0.49%
        
        
           
        
        
          0.14%
        
        
           
        
        
          0.31%
        
      
      
        
          1,924,301
        
        
           
        
        
          
            Purchased
          
          
            Residential
          
        
        
          0.73%
        
        
           
        
        
          0.44%
        
        
           
        
        
          0.52%
        
        
           
        
        
          0.43%
        
        
           
        
        
          0.30%
        
      
      
        
          64,022
        
        
           
        
        
          
            CRA
          
          
            Residential
          
        
        
          2.57%
        
        
           
        
        
          1.55%
        
        
           
        
        
          0.93%
        
        
           
        
        
          2.54%
        
        
           
        
        
          2.10%
        
      
      
        
          154,157
        
        
           
        
        
          
            Commercial
          
          
            Business
          
        
        
          0.00%
        
        
           
        
        
          0.00%
        
        
           
        
        
          0.00%
        
        
           
        
        
          1.03%
        
        
           
        
        
          0.43%
        
      
      
        
          $4,418,129
        
        
           
        
        
          
            Total
          
          
            BankAtlantic
          
        
        
          
            0.73%
          
        
        
          
            (a)
          
        
        
          0.65%
        
        
           
        
        
          0.98%
        
        
           
        
        
          0.43%
        
        
           
        
        
          0.45%
        
      
      
        
          
            (a)Excludes $26 million of CRE loans that had matured and approved 
            for renewal or forbearance at 9/30/08 but were not fully 
            documented at that time. Including these loans, CRE delinquencies 
            were 2.52% and Total BankAtlantic delinquencies were 1.31% at 
            9/30/2008.
          
        
      
    
    
      
        
          
            Loan Provision & Allowance for Loan Losses
          
        
      
      
        
          ($ in thousands)
        
        
          3Q 2008

          
            Loan Provision
          
        
        
           
        
        
          
            Allowance for Loan Losses
          
          
            at September 30, 2008
          
        
        
           
        
        
          
            % of Reserves
          
          
            to Total Loans
          
        
      
      
        
          Commercial Real Estate
        
        
          $4,015
        
        
           
        
        
          $61,882
        
        
           
        
        
          5.03%
        
      
      
        
          Consumer
        
        
          14,574
        
        
           
        
        
          30,279
        
        
           
        
        
          4.11%
        
      
      
        
          Small Business
        
        
          2,861
        
        
           
        
        
          7,122
        
        
           
        
        
          2.22%
        
      
      
        
          Residential
        
        
          1,483
        
        
           
        
        
          4,978
        
        
           
        
        
          0.25%
        
      
      
        
          Commercial Business
        
        
          (9)
        
        
           
        
        
          2,174
        
        
           
        
        
          1.44%
        
      
      
        
          Total BankAtlantic
        
        
          $22,924
        
        
           
        
        
          $106,435
        
        
           
        
        
          2.40%
        
      
      
        
          Parent-Workout Sub
        
        
          8,290
        
        
           
        
        
          7,702
        
        
           
        
        
          9.13%
        
      
      
        
          Consolidated Total
        
        
          $31,214
        
        
           
        
        
          $114,137
        
        
           
        
        
          2.53%
        
      
    
    
      Financial data is provided in the supplemental financial 
      tables available at www.BankAtlanticBancorp.com 
      for both BankAtlantic (bank only) as well as the Parent- BankAtlantic 
      Bancorp.
    
    
      
        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.
      
    
    
      Additionally, BankAtlantic financial information is provided 
      quarterly to the OTS through Thrift Financial Reports, available to the 
      public through the OTS and FDIC websites.
    
    
      Copies of BankAtlantic Bancorp’s third 
      quarter, 2008 financial 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.
    
    
      BankAtlantic Bancorp plans to host an investor and media teleconference 
      call and webcast on Wednesday, October 29, 2008 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 
      67268597.
    
    
      A replay of the conference call will be available beginning two hours 
      after the call’s completion through 5:00 p.m. 
      Eastern Time, Friday, November 14, 2008. 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 67268597.
    
    
      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=51813. 
      The archive of the teleconference call will be available through 5:00 
      p.m. Eastern Time, Friday, November 14, 2008.
    
    
      About BankAtlantic Bancorp:
    
    
      BankAtlantic Bancorp (NYSE:BBX) is a bank holding company and the parent 
      company of BankAtlantic.
    
    
      About BankAtlantic:
    
    
      BankAtlantic, "Florida's Most Convenient Bank", with over $6 billion in 
      assets and more than 100 stores is one of the largest financial 
      institutions headquartered in Florida. BankAtlantic provides a full line 
      of products and services encompassing consumer and commercial banking. 
      BankAtlantic is open 7 days a week and offers holiday hours, extended 
      weekday hours, Totally Free Online Banking & Bill Pay, a 7-Day Customer 
      Service Center, Totally Free Change Exchange coin counters and free 
      retail and business checking with a free gift. BankAtlantic has been 
      serving communities throughout Florida since 1952 and currently operates 
      more than 250 conveniently located ATMs. The bank has supported 
      thousands of charitable, civic and professional organizations since the 
      inception of the BankAtlantic Foundation in 1994.
    
    
      For further information, please visit our websites:
    
    
      www.BankAtlanticBancorp.com
    
    
      www.BankAtlantic.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.
    
    
      
        
          
            BankAtlantic Bancorp Contact 
            Info:
          
        
      
      
        
          Donna Rouzeau,
        
      
      
        
          Assistant Vice President, Investor Relations & Corporate 
          Communications
        
      
      
        
          
            Email: [e-mail]
          
        
      
      
        
          Leo Hinkley,
        
      
      
        
          Senior Vice President, Investor Relations Officer
        
      
      
        
          
            Email: [e-mail]
          
        
      
      
        
          
            Phone: [phone], Fax: 
            [phone]
          
        
      
      
        
          
            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: [phone], Fax: [phone]
        
      
      
        
          
            Email: [e-mail]
          
        
      
      
        
          
            Public Relations for 
            BankAtlantic:
          
        
      
      
        
          Rbb Public Relations
        
      
      
        
          Sandra Fine
        
      
      
        
          Telephone: [phone], Fax: [phone]
        
      
      
        
          
            Email: [e-mail]
          
        
      
    
    
    
    
      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, including the impact of a continued downturn in 
      the economy or a recession on our business generally, as well as the 
      ability of our borrowers to service their obligations and of our 
      customers to maintain account balances; 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 (including those 
      held in the asset workout subsidiary of the Company) of a sustained 
      downturn in the economy and in the real estate market and other 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 (including “Builder land 
      bank loans”) and conditions specifically in 
      that market sector; the risks of additional charge-offs, impairments and 
      required increases in our allowance for loan losses; BankAtlantic Bancorp’s 
      ability to successfully manage the loans held by the newly formed asset 
      workout subsidiary; the successful completion of a sale or joint venture 
      of BankAtlantic Bancorp’s interests 
      in the newly formed asset workout subsidiary in the future, and the risk 
      that we will continue to realize losses in that loan portfolio; 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 financial and credit markets and the impact of 
      such conditions on our activities, the value of our assets and on the 
      ability of our borrowers to service their debt obligations; BankAtlantic’s 
      seven-day banking initiatives and other growth, marketing or advertising 
      initiatives not resulting in continued growth of core deposits or 
      increasing average balances of new deposit accounts or producing results 
      which do not justify their costs; the success of our expense reduction 
      initiatives and the ability to achieve additional cost savings; the 
      success of BankAtlantic’s store expansion 
      program, and achieving growth and profitability at the stores in the 
      time frames anticipated, if at all; and the impact of periodic 
      testing of goodwill, deferred tax assets and other assets for impairment. 
      Past performance, actual or estimated new account openings and growth 
      may not be indicative of future results. 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.