Exhibit 99.1

BankAtlantic Bancorp Reports Financial Results

For the First Quarter, 2011

FORT LAUDERDALE, Florida — April 25, 2011 — BankAtlantic Bancorp, Inc. (NYSE: BBX) today reported a net loss of ($22.9) million, or ($0.37) per diluted share, for the quarter ended March 31, 2011, compared to a net loss of ($20.5) million, or ($0.42) per diluted share, for the quarter ended March 31, 2010. BankAtlantic’s net loss was ($16.4) million for the first quarter of 2011, compared to a net loss of ($17.1) million for the first quarter of 2010.

BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, “Over the last several months, it appears that the decline in commercial real estate valuations in Florida has begun to stabilize and in some areas real estate valuations have actually improved. Unemployment levels in the state have stabilized or improved. As the economic picture in Florida gets brighter, the prospects for BankAtlantic become brighter as well. Losses are down (the quarter’s results represent the lowest quarterly loss for BankAtlantic since the third quarter of 2008), provisions and charge-offs have declined, and fewer loans are migrating to default status. Deposits continue to grow, leverage is low, and nonperforming assets are down. And our capital ratios, which have been generally stable since the downturn began in 2006, are expected to improve during the second quarter of 2011 as a result of the pending sale of BankAtlantic’s Tampa branches.

“We believe our continued focus on the fundamentals of Capital, Credit and Core Earnings, combined with the cautious optimism for the Florida economy, will result in a brighter outlook for BankAtlantic, particularly once the impairments resulting from lower valuations on collateral subside as the economy recovers.

Highlights of the BankAtlantic Operating Segment

 

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“Despite the challenges in the Florida economy, core operating earnings (1) have remained strong ranging from $51 million for the full year 2007 to $47 million for the full year 2010. For the first quarter of 2011, core earnings were $11.6 million versus $15.8 million for the first quarter of 2010 and $8.3 million for the fourth quarter of 2010.

 

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“Core deposits (2) increased from $2.3 billion at December 31, 2007 to $2.8 billion at December 31, 2010. Core deposits for the first quarter of 2011 increased to $3.0 billion and we believe there is opportunity for continued growth of this low cost funding source in our markets as BankAtlantic remains one of the larger community banks in our markets.

 

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“Total cost of deposits decreased from 2.15% in the fourth quarter of 2007 to 0.47% in the fourth quarter of 2010. For the first quarter of 2011, the total cost of deposits improved to 0.44% from the fourth quarter of 2010, reflecting the stable, relationship source of our deposits. For the first quarter of 2011, the funding cost of our core deposits was 25 basis points.

 

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“Brokered deposits, which have never been a core funding source, totaled $14.7 million or 0.2% of total assets at December 31, 2007 and $14.1 million or 0.3% of total assets at December 31, 2010. Brokered deposits at March 31, 2011 totaled $10.8 million or 0.2% of total assets.

“Net interest margin was 3.62% for the year ended December 31, 2007 and 3.55% for the year ended December 31, 2010. Net interest margin was 3.28% for the quarter ending March 31, 2011, down from 3.61% for the first quarter of 2010 due to increased liquidity being maintained in anticipation of the pending Tampa branch sale, but also reflecting both increased loan yields and decreased cost of interest-bearing liabilities.

 

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“Available liquidity, which includes cash, unpledged securities and unused Federal Funds and/or FHLB borrowing capacity, increased from 35.9% of deposits at December 31, 2007 to 37.7% at December 31, 2010. Available liquidity was 39.7%

 

(1)

Pre-tax core operating earnings is a non-GAAP measure that we use to refer to pre-tax earnings before provision for loan losses, tax certificate provisions, debt redemption costs, gains/losses on sales of real estate, and impairments, restructuring and exit activities. A reconciliation of loss from bank operations before income taxes to pre-tax core operating earnings is included in BankAtlantic Bancorp’s First Quarter, 2011 Supplemental Financials available at www.BankAtlanticBancorp.com. To view the financial data, access the “Investor Relations” section and click on the “Quarterly Financials or Supplemental Financials” navigation links.

(2)

Core deposits is a term that we use to refer to Demand, NOW and Savings accounts. A reconciliation of core deposits to total deposits is included in BankAtlantic Bancorp’s First Quarter, 2011 Supplemental Financials available at www.BankAtlanticBancorp.com. To view the financial data, access the “Investor Relations” section and click on the “Quarterly Financials or Supplemental Financials” navigation links.

 

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of deposits at March 31, 2011. Cash and unpledged securities balances increased from 12.7% of deposits at December 31, 2007 to 22.0% of deposits at December 31, 2010. Cash and unpledged securities balances were 25.0% of deposits at March 31, 2011.

 

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“Borrowings decreased from $1.6 billion at December 31, 2007 to $226 million at December 31, 2010. Borrowings at March 31, 2011 were only $87.9 million. The ratio of borrowings as a percentage of total borrowings and deposits declined from 28.7% at December 31, 2007 to 5.5% at December 31, 2010. At March 31, 2011, the ratio of borrowings as a percentage of total borrowings and deposits was only 2.2%.

 

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“Total non-interest expense decreased from $314 million at December 31, 2007 to $236 million at December 31, 2010. For the first quarter of 2011, non-interest expense was $46 million, reflecting BankAtlantic’s lowest quarterly non-interest expense in over six years, and we anticipate additional efficiencies after the pending sale of our Tampa branch franchise. Core expenses (3) were $46 million in the first quarter of 2011, compared to core expenses of $52 million in the first quarter of 2010, reflecting a $6 million improvement.

 

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“The allowance for loan losses to total loans increased from 2.04% at December 31, 2007 to 5.08% at December 31, 2010. At March 31, 2011, the allowance for loan losses to total loans was 5.20%.

 

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“Tier 1/Core Capital ratios have remained generally stable with 6.94% at December 31, 2007 compared to 6.22% at December 31, 2010. Throughout that tumultuous period for the Florida economy, our capital ratios never fell below regulatory requirements. Our March 31, 2011 Tier 1/Core Capital ratio was 5.97%, and the previously announced Tampa branch sale (anticipated to close during the first week of June 2011, subject to customary and regulatory conditions), is estimated to add over 145 basis points to each of our regulatory capital ratios.

 

(3)

Core expense is a non-GAAP measure that we use to refer to total non-interest expenses excluding tax certificate provisions, debt redemption costs, gains/losses on sales of real estate, impairments, restructuring and exit activities. A reconciliation of total expense to core expense is included in BankAtlantic Bancorp’s First Quarter, 2011 Supplemental Financials available at www.BankAtlanticBancorp.com. To view the financial data, access the “Investor Relations” section and click on the “Quarterly Financials or Supplemental Financials” navigation links.

 

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“As we have previously discussed, we believe that BankAtlantic’s loan losses may have peaked in 2009. While the current quarter’s results reflect losses associated with our loan portfolios, we believe the trends support our optimism that we are on the path toward recovery. These trends, from the beginning of the recession through the current quarter, are set forth in the Supplemental Graphs to be viewed in conjunction with the Supplemental Financials on our BankAtlantic Bancorp’s Investor Relations website.

Supplemental graphs for BankAtlantic (bank only) are provided as a means to illustrate many of the metrics described above. To view the supplemental graphs, please visit our website at www.BankAtlanticBancorp.com, access the “Investor Relations” section and click on the “Supplemental Graphs” navigation link or visit http://www.snl.com/interactive/lookandfeel/101666/BBX_fin_supp.pdf.

Additional detailed financial data for BankAtlantic (bank only), the Parent- BankAtlantic Bancorp, and consolidated BankAtlantic Bancorp are available at www.BankAtlanticBancorp.com. To view the financial data, access the “Investor Relations” section and click on the “Quarterly Financials or Supplemental Financials” navigation links.

BANKATLANTIC PERFORMANCE

CAPITAL:

“Despite the sustained downturn in our markets, our capital ratios have been generally stable, primarily a result of capital contributions by BankAtlantic Bancorp into BankAtlantic, a focus on core earnings, and the reduction of assets. At March 31, 2011, BankAtlantic’s capital ratios were: Tier 1/Core capital of 5.97%, Tier 1 risk-based capital of 9.68%, and Total risk-based capital of 11.76%.

Capital Ratios at BankAtlantic at prior year-end periods were:

 

		12/2006				12/2007				12/2008				12/2009				12/2010
Tier 1/Core			7.55	%			6.94	%			6.80	%			7.58	%			6.22	%
Tier 1 Risk-Based			10.50	%			9.85	%			9.80	%			10.63	%			9.68	%
Total Risk-Based			12.08	%			11.63	%			11.63	%			12.56	%			11.72	%

“As previously disclosed, BankAtlantic agreed to sell its 19 branches and 2 related facilities in the Tampa – St. Petersburg area and the associated deposits to PNC Bank, N.A., part of the PNC Financial Services Group Inc. (NYSE: PNC). PNC and BankAtlantic have both

 

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received regulatory approval for the transaction. The transaction is anticipated to close during the first week of June 2011, subject to the terms and conditions of the acquisition agreement and regulatory requirements. Upon closing, we anticipate recording a net gain of between $38 million and $39 million as part of the transaction (based on deposit levels of approximately $390.4 million at March 31, 2011), which we estimate will add over 145 basis points to each of our regulatory capital ratios.

CREDIT:

“Florida was especially hard hit during the current economic downturn as real estate values declined significantly and unemployment levels rose. However, when we compare the current 2011 quarter with the past two years, we are encouraged by recent credit trends and we continue to believe that 2009 may have been the peak of our impairments, provisions and delinquencies.

 

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“Delinquencies excluding non-accrual loans and matured loans in the process of renewal were $55.7 million, or 1.86% of total loans at March 31, 2011, as compared to $87.4 million, or 2.40% of total loans at March 31, 2010.

 

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“Total non-accrual loans were $362.6 million at March 31, 2011, reflecting a decrease of $8.4 million as compared to the fourth quarter of 2010, and an increase of $61.2 million as compared to March 31, 2010.

 

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“At March 31, 2011, approximately $93.0 million of commercial real estate and commercial business non-accrual loans were impaired but continued to be current and paying under the terms of their loan agreements.

 

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“The new non-accrual commercial real estate and commercial business loans added in the first quarter of 2011 included the following: One defaulted loan for approximately $300,000; two loans totaling $5.1 million that were less than thirty days past due at March 31, 2011 (and continue to be past due); and one loan for $11.8 million that was impaired but continued to be current and paying under the terms of the loan agreement.

 

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“BankAtlantic’s allowance for loan losses was $154.2 million at March 31, 2011. The allowance coverage to total loans increased to 5.20% at March 31, 2011 compared to 4.64% at March 31, 2010, and 5.08% at December 31, 2010.

 

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“The provision for loan losses in the first quarter of 2011 was $27.8 million compared to $32.0 million in the first quarter of 2010, and included $7.1 million in provision related to non-performing residential and commercial real estate loans transferred to held-for-sale.

 

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“Net charge-offs were $27.8 million in the first quarter of 2011, compared to $36.1 million in the first quarter of 2010.

CORE EARNINGS:

Results of Operations – “BankAtlantic’s net loss was ($16.4) million for the first quarter of 2011, compared to a net loss of ($17.1) million for the first quarter of 2010 and a net loss of ($41.2) million for the fourth quarter of 2010. Pretax core operating earnings for the first quarter of 2011 were $11.6 million, compared to $15.8 million for the first quarter of 2010 and $8.3 million for the fourth quarter of 2010. Loan loss and tax certificate provisions, debt redemption costs, loss on real estate sold and impairment, restructuring and exit activity expenses, which are not included in pre-tax core operating earnings, were ($27.9) million for the first quarter of 2011 versus ($32.8) million for the first quarter of 2010. The individual components of earnings are described more fully below.”

BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, “BankAtlantic’s core and total deposits at March 31, 2011 were $3.0 billion and $4.0 billion, respectively.

 

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“During the first quarter of 2011:

 

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Core deposits increased by $106.2 million.

 

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Total deposits increased by $113.3 million, reflecting primarily the increased core deposits.

“In addition, the average cost of core deposits and total deposits for the first quarter of 2011 was 0.25% and 0.44%, respectively; brokered deposit balances represented 0.2% of assets; and non-CD balances represented approximately 84% of total deposits.

Net Interest Income and Margin – “Net interest income for the first quarter of 2011 was $34.7 million compared to $39.5 million for the first quarter of 2010. The reduction in the current quarter net interest income versus the comparable quarter reflected the impact of decreases in earning assets, increases in lower-yielding investments and net increases in nonperforming assets.

 

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“Net interest margin during the first quarter of 2011 was 3.28% as compared to 3.61% during the first quarter of 2010.

 

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“Net interest spread during the first quarter of 2011 was 3.14% as compared to 3.39% during the first quarter of 2010.

 

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“The cost of interest bearing liabilities during the first quarter of 2011 was 0.59%, improved from 0.99% in the first quarter of 2010.

 

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“The yield on total loans (including nonperforming loans) during the first quarter of 2011 was 4.49%, increased from 4.43% in the first quarter of 2010.

 

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“The yield on investments during the first quarter of 2011 was 1.63%, down significantly from 4.06% in the first quarter of 2010 due to average invested excess cash of $553.9 million during the first quarter of 2011 earning an average yield of 21 basis points. This compares to $162.2 million in average invested cash during the first quarter of 2010 earning a similar yield. We are holding excess cash in anticipation of the consummation of the Tampa branch sale in the second quarter of 2011, and these additional cash balances had a negative impact on the current quarter’s net interest margin.

 

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“Other average balance sheet activity impacting net interest income included:

 

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“Average earning assets for the first quarter of 2011 declined by $131.3 million from the first quarter of 2010, due primarily to routine asset paydowns and net charge-offs.

 

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“Nonperforming assets increased by $88.6 million from March 31, 2010 to March 31, 2011.

Non-interest income – “Total non-interest income for the first quarter of 2011 was $22.9 million, down $5.3 million from the first quarter of 2010. The decrease in the current quarter primarily reflects declines in service charges relating to customer non-sufficient funds activity, as compared to the first quarter of 2010, partially offset by additional deposit account fees related to monthly maintenance charges on certain products, foreign currency hedging income of approximately $420,000 and other fees earned in the current quarter.

 

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Non-interest expense – “Total non-interest expenses were $46.2 million in the first quarter of 2011 compared to $52.7 million in the first quarter of 2010. Core expenses were $46.0 million in the first quarter of 2011, compared to core expenses of $51.9 million in the first quarter of 2010, reflecting a $5.6 million decrease in employee compensation and benefits and a $1.0 million decrease in occupancy and equipment expense.

“Expenses not included in ‘core expenses’ consisted of the following:

 

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“Impairment, restructuring and exit recovery of $0.4 million in the first quarter of 2011, versus charges of $0.1 million in the first quarter of 2010. The charges in the first quarter of 2011 included:

 

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Charges totaling $0.4 million related to write-downs of real estate owned.

 

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Net recovery of $1.0 million of restructuring charges, primarily related to favorable lease terminations on unused leased property sites.

 

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Lower of cost or market adjustments on loans held for sale of $0.2 million.

 

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“Tax certificate provision of $0.8 million in the first quarter of 2011, versus $0.7 million in the first quarter of 2010.

 

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“Gain on sale of real estate of $0.3 million in the first quarter of 2011, versus a gain of $0.1 million in the first quarter of 2010.

 

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“Costs associated with debt redemption of $10,000 in the first quarter of 2011, versus $7,000 in the first quarter of 2010.”

BANKATLANTIC BANCORP (Parent Company level):

Alan B. Levan further commented, “BankAtlantic Bancorp’s net loss at the parent only level was ($6.5) million for the first quarter of 2011, compared to a net loss of ($3.4) million for the first quarter of 2010. The first quarter of 2011 included a net recovery for loan losses of $20,000 compared to a net recovery of $1.3 million in the first quarter of 2010. Additionally, the net loss in the first quarter of 2011 included a $2.3 million impairment charge relating to real estate owned.

 

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“As first announced in the first quarter of 2009, we continue to defer the regularly scheduled interest payments on the outstanding junior subordinated debentures relating to all of our TruPS, which is permitted under the terms of the securities for up to another 11 consecutive quarterly periods.

Asset Workout Subsidiary – “The loans and real estate owned held by the parent company workout subsidiary at March 31, 2011 included real estate owned of $8.8 million, performing loans of $2.7 million and non-accrual loans of $11.4 million. Charge-offs of $21.1 million have been taken on these non-accrual loans, and $0.8 million in specific reserves are currently maintained related to these loans.

REGULATORY MATTERS:

“On February 23, 2011, BankAtlantic Bancorp and BankAtlantic each entered into agreements with the Office of Thrift Supervision (the “OTS”), their primary regulator, agreeing to continue taking actions to strengthen their financial condition and operations. Each agreement, known as a Stipulation and Consent to the issuance of an Order to Cease and Desist (the “Orders”) is a formal action by the OTS requiring corrective measures in a number of areas, including requiring BankAtlantic to meet by June 30, 2011 and maintain a Tier 1/Core capital ratio of 8% and a Total Risk Based capital ratio of 14%. No fines or penalties were imposed in connection with the Orders.

“In light of the economic climate, more than 70 banks in Florida and hundreds nationally have been asked by regulators to sign supervisory and enforcement agreements. We have been working closely with our regulators since the start of this economic recession to increase capital, reduce higher risk and non performing loans, return to profitability and continue safe and sound banking practices. These agreements formalize steps that we believe are already underway and many have already been fully implemented.

Mr. Alan B. Levan continued, “We have begun to see signs of improvement in areas of the Florida economy, and with improving trends, as well as declining losses, provisions and charge-offs at BankAtlantic, we believe there is cause for cautious optimism.”

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Additional detailed financial data for BankAtlantic (bank only), the Parent- BankAtlantic Bancorp, and consolidated BankAtlantic Bancorp are available at www.BankAtlanticBancorp.com

To view the financial data, access the “Investor Relations” section and click on the “Quarterly Financials or Supplemental Financials” navigation links. Additionally, BankAtlantic’s financial information is provided quarterly to the OTS through Thrift Financial Reports, available to the public through the OTS and FDIC websites.

 

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Additionally, copies of BankAtlantic Bancorp’s first quarter, 2011 financial results press release and financial data are 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 bank holding company and the parent company of BankAtlantic.

About BankAtlantic:

BankAtlantic, Florida’s Most Convenient Bank, is one of the largest financial institutions headquartered in Florida. Via its broad network of community branches and conveniently located ATMs, BankAtlantic provides a full line of personal, small business and commercial banking products and services. BankAtlantic is open 7 days a week and offers extended weekday hours, Online Banking & Bill Pay, a 7-Day Customer Service Center, Change Exchange coin counters, as well as retail and business checking accounts. Member FDIC.

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:

Leo Hinkley, Investor and Media Relations Officer

Telephone: (954) 940-5300

Email: InvestorRelations@BankAtlanticBancorp.com

BankAtlantic, “Florida’s Most Convenient Bank,” Contact Info:

Media Relations:

Sharon Lyn, Vice President

Telephone: 954-940-6383, Fax: 954-940-5320

Email: CorpComm@BankAtlanticBancorp.com

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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. Actual

 

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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 the changing regulatory environment, a continued or deepening recession, continued decreases in real estate values, and increased unemployment or sustained high unemployment rates on our business generally, BankAtlantic’s regulatory capital ratios, the ability of our borrowers to service their obligations and of our customers to maintain account balances and the value of collateral securing our loans; 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 risks of additional charge-offs, impairments and required increases in our allowance for loan losses especially if the economy and real estate markets in Florida do not improve; the impact of regulatory proceedings and litigation regarding overdraft fees; risks associated with maintaining compliance with the Cease and Desist Orders entered into by the Company and BankAtlantic with the Office of Thrift Supervision, including risks that compliance will adversely impact operations, risks associated with failing to comply with regulatory mandates or the imposition of additional regulatory requirements and/or fines; the uncertain impact of legal proceedings on our financial condition or operations, including the risk that the securities class action litigation verdict may not be overturned; 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 and our ability to raise capital; that the sale of our Tampa branch operations may not be consummated pursuant to its terms, at the time anticipated or at all, and that the transaction may not have the positive financial impact currently anticipated; we may raise additional capital and such capital may be highly dilutive to BankAtlantic Bancorp’s shareholders or may not be available; and the risks associated with the impact of periodic valuation testing of goodwill, deferred tax assets and other assets. Past performance and perceived trends 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, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. The Company cautions that the foregoing factors are not exclusive.

 

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Supplemental Financial Information

First Quarter 2011

Release Date: April 25, 2011

This information is preliminary, unaudited and based on data available at the time of the release.

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BankAtlantic Bancorp, Inc. and Subsidiaries

Summary of Selected Financial Data (unaudited)

 

						For the Three Months Ended
						3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Earnings (in thousands):
Net loss from continuing operations						$	(22,887	)			(45,795	)			(25,184	)			(51,250	)			(20,521	)
Net loss						$	(22,887	)			(46,295	)			(25,184	)			(51,250	)			(20,521	)
Net loss attributable to BankAtlantic Bancorp						$	(23,182	)			(46,554	)			(25,409	)			(51,489	)			(20,729	)
Pre-tax core operating earnings - Non-GAAP			(note 1	)		$	7,210				4,269				7,871				3,927				11,103
Average Common Shares Outstanding (in thousands):
Basic							62,724				62,571				60,784				50,679				49,335
Diluted							62,724				62,571				60,784				50,679				49,335
Key Performance Ratios
Basic and diluted loss per share from continuing operations			(note 2	)		$	(0.37	)			(0.74	)			(0.42	)			(1.02	)			(0.42	)
Basic and diluted loss per share			(note 2	)		$	(0.37	)			(0.74	)			(0.42	)			(1.02	)			(0.42	)
Return on average tangible assets from continuing operations			(note 3	)		%	(2.02	)			(4.06	)			(2.22	)			(4.46	)			(1.74	)
Return on average tangible equity from continuing operations			(note 3	)		%	(1,152.71	)			(356.19	)			(138.75	)			(193.89	)			(64.56	)
Average Balance Sheet Data (in millions):
Assets						$	4,550				4,530				4,548				4,616				4,744
Tangible assets - Non-GAAP			(note 3	)		$	4,536				4,515				4,533				4,600				4,728
Loans, gross						$	3,123				3,360				3,513				3,627				3,799
Investments						$	1,118				883				748				648				604
Deposits and escrows						$	3,980				3,900				3,931				4,080				4,013
Equity						$	16				63				85				118				142
Tangible equity - Non-GAAP			(note 3	)		$	8				51				73				106				127
Period End ($ in thousands)
Total loans, net						$	2,821,429				3,018,179				3,239,542				3,387,725				3,515,542
Total assets						$	4,470,629				4,509,433				4,527,736				4,655,600				4,748,201
Total equity						$	(8,729	)			14,744				64,082				77,466				119,611
Class A common shares outstanding							61,979,071				61,595,321				61,595,321				52,946,126				48,245,042
Class B common shares outstanding							975,225				975,225				975,225				975,225				975,225
Book value per share						$	(0.14	)			0.24				1.02				1.44				2.43
Tangible book value per share - Non-GAAP			(note 4	)		$	(0.26	)			0.10				0.84				1.20				2.20
High stock price for the quarter						$	1.33				1.59				1.85				3.28				3.24
Low stock price for the quarter						$	0.82				0.60				0.75				1.35				1.14
Closing stock price						$	0.92				1.15				0.80				1.40				1.77

Notes:

(1)

Pre-tax core operating earnings excludes provision for loan losses, cost associated with debt redemption, provision for tax certificates, gains/losses on sales of real estate and impairments, restructuring and exit activities. Pre-tax core operating earnings is a non-GAAP measure. See page 7 for a reconciliation of non-GAAP measures to GAAP financial measures.

(2)	Diluted and basic loss per share are the same for all periods presented.

(3)

Average tangible assets is defined as average total assets less average goodwill and core deposit intangibles. Average tangible equity is defined as average total equity less average goodwill, core deposit intangibles and other comprehensive income. Average tangible assets and average tangible equity are non-GAAP measures. See page 7 for a reconciliation of non-GAAP measures to GAAP financial measures.

(4)

Tangible book value per share is defined as equity less accumulated other comprehensive loss, goodwill and core deposit intangibles divided by the number of common shares outstanding. Tangible book value per share is a non-GAAP measure. See page 7 for a reconciliation of non-GAAP measures to GAAP financial measures.

 

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BankAtlantic Bancorp, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (unaudited)

 

		March 31,				December 31,
(in thousands)		2011				2010
ASSETS
Cash and due from depository institutions		$	103,507				97,930
Interest bearing deposits at federal reserve and other banks			656,424				455,538
Securities available for sale and derivatives (at fair value)			376,042				424,391
Investment securities (approximate fair value: $1,500 and $1,500)			1,500				1,500
Tax certificates, net of allowance of $9,287 and $8,811			77,837				89,789
Loans receivable, net of allowance for loan losses of $155,051 and $162,139			2,821,429				3,018,179
Loans held for sale (at lower of cost or fair value)			49,455				29,765
Federal Home Loan Bank stock, at cost which approximates fair value			43,557				43,557
Real estate held for development and sale			5,436				5,436
Real estate owned			75,146				74,488
Office properties and equipment, net			148,120				151,414
Goodwill and other intangible assets			14,260				14,569
Assets held for sale			36,909				37,334
Other assets			61,007				65,543
Total assets		$	4,470,629				4,509,433
LIABILITIES AND EQUITY
Liabilities:
Deposits
Demand		$	879,820				792,260
Savings			452,533				418,304
NOW			1,307,041				1,370,568
Money market			366,968				354,282
Certificates of deposit			609,538				616,454
Deposits held for sale			390,432				341,146
Total deposits			4,006,332				3,893,014
Advances from FHLB			45,000				170,000
Securities sold under agreements to repurchase			17,006				21,524
Short term borrowings			1,367				1,240
Subordinated debentures			22,000				22,000
Junior subordinated debentures			325,974				322,385
Liabilities held for sale			79				87
Other liabilities			61,600				64,439
Total liabilities			4,479,358				4,494,689
Equity:
Common stock			630				626
Additional paid-in capital			317,736				317,362
Accumulated deficit			(320,796	)			(297,614	)
Accumulated other comprehensive loss			(6,807	)			(6,088	)
Total BankAtlantic Bancorp stockholders’ equity			(9,237	)			14,286
Noncontrolling interests			508				458
Total equity			(8,729	)			14,744
Total liabilities and equity		$	4,470,629				4,509,433

 

3

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BankAtlantic Bancorp, Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

 

		For the Three Months Ended
(in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
INTEREST INCOME:
Interest and fees on loans		$	34,910				36,106				38,356				39,898				41,634
Interest on securities available for sale			2,597				2,815				2,847				2,714				3,645
Interest on tax certificates			1,410				1,544				2,837				514				2,356
Interest and dividends on investments			588				299				367				223				153
Total interest income			39,505				40,764				44,407				43,349				47,788
INTEREST EXPENSE:
Interest on deposits			4,367				4,556				4,877				6,021				7,057
Interest on advances from FHLB			115				144				106				1				958
Interest on short-term borrowed funds			6				7				8				7				8
Interest on debentures			4,008				4,007				4,107				3,891				3,791
Total interest expense			8,496				8,714				9,098				9,920				11,814
NET INTEREST INCOME			31,009				32,050				35,309				33,429				35,974
Provision for loan losses			27,812				40,643				24,410				48,553				30,755
NET INTEREST INCOME AFTER PROVISION			3,197				(8,593	)			10,899				(15,124	)			5,219
NON-INTEREST INCOME:
Service charges on deposits			12,032				14,080				15,214				15,502				15,048
Other service charges and fees			7,191				7,528				7,495				7,739				7,378
Securities activities, net			(24	)			(34	)			(552	)			312				3,138
Other			4,008				3,091				5,204				2,970				2,900
Total non-interest income			23,207				24,665				27,361				26,523				28,464
NON-INTEREST EXPENSE:
Employee compensation and benefits			19,290				19,868				23,549				25,155				25,378
Occupancy and equipment			12,585				12,999				13,263				13,745				13,582
Advertising and business promotion			1,695				2,389				2,026				2,239				1,944
Professional fees			3,359				6,518				6,209				4,824				2,887
Check losses			299				705				763				521				432
Supplies and postage			902				1,052				983				921				998
Telecommunication			575				635				702				662				534
Cost associated with debt redemption			10				—				—				53				7
Provision for tax certificates			779				800				885				2,134				733
(Gain) loss on sale of real estate			(453	)			663				(442	)			1,490				(104	)
Impairment, restructuring and exit activities			1,948				10,219				8,165				2,947				143
Other			8,301				8,280				7,304				7,958				7,580
Total non-interest expense			49,290				64,128				63,407				62,649				54,114
Loss from continuing operations before income taxes			(22,886	)			(48,056	)			(25,147	)			(51,250	)			(20,431	)
Provision (benefit) for income taxes			1				(2,261	)			37				—				90
Loss from continuing operations			(22,887	)			(45,795	)			(25,184	)			(51,250	)			(20,521	)
Discontinued operations			—				(500	)			—				—				—
Net loss			(22,887	)			(46,295	)			(25,184	)			(51,250	)			(20,521	)
Less: net income attributable to noncontrolling interest			(295	)			(259	)			(225	)			(239	)			(208	)
Net loss attributable to BankAtlantic Bancorp		$	(23,182	)			(46,554	)			(25,409	)			(51,489	)			(20,729	)

 

4

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BankAtlantic Bancorp, Inc. and Subsidiaries

Consolidated Average Balance Sheet (unaudited)

 

				For the Three Months Ended
(in thousands except percentages and per share data)				3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Loans:
Residential real estate				$	1,175,875				1,270,095				1,356,748				1,433,322				1,513,302
Commercial real estate					891,043				1,010,148				1,061,918				1,079,760				1,148,435
Consumer					620,986				635,564				653,631				670,173				688,173
Commercial business					134,452				139,485				133,841				135,689				139,843
Small business					300,931				304,406				306,927				308,254				309,549
Total Loans					3,123,287				3,359,698				3,513,065				3,627,198				3,799,302
Investments					1,117,901				882,974				748,299				648,462				603,874
Total interest earning assets					4,241,188				4,242,672				4,261,364				4,275,660				4,403,176
Goodwill and core deposit intangibles					14,411				14,718				15,028				15,353				15,652
Other non-interest earning assets					294,489				272,805				271,950				324,727				324,910
Total assets				$	4,550,088				4,530,195				4,548,342				4,615,740				4,743,738
Tangible assets - Non-GAAP		(note 3)		$	4,535,677				4,515,477				4,533,314				4,600,387				4,728,086
Deposits:
Demand deposits				$	944,956				924,035				907,294				916,131				864,413
Savings					468,673				448,942				444,981				445,686				425,235
NOW					1,519,105				1,476,258				1,484,558				1,525,475				1,467,103
Money market					389,155				406,781				404,406				386,712				360,470
Certificates of deposit					658,051				644,124				689,664				805,656				896,074
Total deposits					3,979,940				3,900,140				3,930,903				4,079,660				4,013,295
Short-term borrowed funds					19,191				18,099				26,187				25,528				26,332
FHLB advances					134,833				149,130				106,685				1,264				173,011
Debentures					344,971				341,409				340,230				334,507				331,403
Total borrowings					498,995				508,638				473,102				361,299				530,746
Other liabilities					55,040				58,015				59,207				57,152				57,755
Total liabilities					4,533,975				4,466,793				4,463,212				4,498,111				4,601,796
Equity					16,113				63,402				85,130				117,629				141,942
Total liabilities and equity				$	4,550,088				4,530,195				4,548,342				4,615,740				4,743,738
Other comprehensive loss in equity					(6,240	)			(2,743	)			(2,499	)			(3,454	)			(846	)
Tangible equity - Non-GAAP		(note 3)		$	7,942				51,427				72,601				105,730				127,136
Net Interest Margin					2.92	%			3.03	%			3.32	%			3.13	%			3.33	%

 

5

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Consolidated BankAtlantic Bancorp, Inc. and Subsidiaries

Nonperforming Assets and Credit Quality Statistics

 

(in thousands)		As of
		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Nonaccrual loans:
BankAtlantic		$	362,604				370,959				404,087				362,126				301,365
Parent- Work out Sub			11,360				14,508				19,916				24,358				35,326
Consolidated nonaccrual loans		$	373,964				385,467				424,003				386,484				336,691
Quarter-to-Date Net Charge-offs:
BankAtlantic		$	(27,823	)			(57,688	)			(21,887	)			(32,547	)			(36,074	)
Parent- Work out Sub			4				(3,741	)			(4,438	)			(5,741	)			(4,302	)
Consolidated charge-offs		$	(27,819	)			(61,429	)			(26,325	)			(38,288	)			(40,376	)
Quarter-to-date Loan Provision:
BankAtlantic		$	27,832				40,144				23,012				43,634				32,034
Parent- Work out Sub			(20	)			498				1,398				4,919				(1,279	)
Consolidated loan provision		$	27,812				40,642				24,410				48,553				30,755
Allowance for Loan Loss:
BankAtlantic		$	154,237				161,309				181,760				180,635				169,548
Parent- Work out Sub			814				830				4,187				7,227				8,049
Consolidated allowance for loan loss		$	155,051				162,139				185,947				187,862				177,597
Nonperforming Assets:
BankAtlantic		$	432,316				438,923				464,865				410,542				343,693
Parent- Work out Sub			20,195				24,668				29,682				34,190				45,858
Consolidated nonperforming assets		$	452,511				463,591				494,547				444,732				389,551
Consolidated Credit Quality Statistics
Allowance for loan losses to total loans		%	5.21				5.10				5.43				5.25				4.81
Allowance to nonaccrual loans		%	41.46				42.06				43.86				48.61				52.75
Provision to average loans		%	3.56				4.84				2.78				5.35				3.24
Nonaccrual loans, gross to total assets		%	8.36				8.55				9.36				8.30				7.09
Nonperforming assets, gross to total assets		%	10.12				10.28				10.92				9.55				8.20

 

6

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BankAtlantic Bancorp, Inc. and Subsidiaries

Reconciliation of GAAP Financial Measures to Non-GAAP Measures

Management uses non-GAAP financial measures to supplement its GAAP financial information and to provide additional useful measures in the evaluation of the Company’s operating results and any related trends that may be affecting the Company’s business. Management uses pre-tax core operating earnings to measure the Company’s ongoing financial performance excluding items that are not currently controllable by management. Management uses book value per share and tangible book value per share to enable investors to compare these measures to the quoted market price of the Company’s Class A common stock and to other companies in the industry. The return on average tangible equity and average tangible assets is used by management to measure the Company’s effectiveness in its use of capital and assets, respectively, and to allow for comparison to other companies in the industry. 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.

Reconciliation of loss from continuing operations before income taxes to pre-tax core operating earnings

 

		For the Three Months Ended
(in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Loss from continuing operations before income taxes		$	(22,886	)			(48,056	)			(25,147	)			(51,250	)			(20,431	)
Costs associated with debt redemption			10				—				—				53				7
Provision for tax certificates			779				800				885				2,134				733
Loss (gain) on sale of real estate			(453	)			663				(442	)			1,490				(104	)
Impairment, restructuring and exit activities			1,948				10,219				8,165				2,947				143
Provision for loan losses			27,812				40,643				24,410				48,553				30,755
Non-GAAP pre-tax core operating earnings		$	7,210				4,269				7,871				3,927				11,103
Reconciliation of equity to tangible book value per share
		As of
(in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Equity		$	(8,729	)			14,744				64,082				77,466				119,611
Goodwill and core deposit intangibles			(14,260	)			(14,569	)			(14,877	)			(15,186	)			(15,494	)
Other comprehensive loss			6,807				6,088				3,207				2,320				4,141
Tangible book value		$	(16,182	)			6,263				52,412				64,600				108,258
Common shares outstanding, period end			62,954,296				62,570,546				62,570,546				53,921,351				49,220,267
Book value per share		$	(0.14	)			0.24				1.02				1.44				2.43
Tangible book value per share - Non-GAAP		$	(0.26	)			0.10				0.84				1.20				2.20
Reconciliation of return on average assets and average equity to return on average tangible assets and average tangible equity
		For the Three Months Ended
(in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Net loss from continuing operations		$	(22,887	)			(45,795	)			(25,184	)			(51,250	)			(20,521	)
Average total assets			4,550,088				4,530,195				4,548,342				4,615,740				4,743,738
Average goodwill and core deposit intangibles			(14,411	)			(14,718	)			(15,028	)			(15,353	)			(15,652	)
Average tangible assets			4,535,677				4,515,477				4,533,314				4,600,387				4,728,086
Average equity			16,113				63,402				85,130				117,629				141,942
Average goodwill and core deposit intangibles			(14,411	)			(14,718	)			(15,028	)			(15,353	)			(15,652	)
Other comprehensive loss			6,240				2,743				2,499				3,454				846
Average tangible equity		$	7,942				51,427				72,601				105,730				127,136
Return on average assets from continuing operations			-2.01	%			-4.04	%			-2.21	%			-4.44	%			-1.73	%
Return on average tangible assets from continuing operations - Non-GAAP			-2.02	%			-4.06	%			-2.22	%			-4.46	%			-1.74	%
Return on average equity from continuing operations			-568.16	%			-288.92	%			-118.33	%			-174.28	%			-57.83	%
Return on average tangible equity from continuing operations - Non-GAAP			-1152.71	%			-356.19	%			-138.75	%			-193.89	%			-64.56	%

 

7

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BankAtlantic (Bank Operations Business Segment)

Summary of Selected Financial Data (unaudited)

 

(in thousands except percentages)		For the Three Months Ended
		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Statistics:
Average interest earning assets		$	4,224,423				4,220,720				4,234,115				4,240,545				4,355,771
Average interest bearing liabilities		$	3,221,899				3,177,611				3,189,179				3,220,458				3,383,776
Period end borrowings to deposits and borrowings		%	2.15				5.50				5.76				4.13				4.84
Efficiency ratio		%	80.10				105.60				91.87				94.05				77.86
Yield on interest earning assets		%	3.73				3.86				4.19				4.08				4.38
Cost of interest-bearing liabilities		%	0.59				0.62				0.65				0.78				0.99
Interest spread		%	3.14				3.24				3.54				3.30				3.39
Net interest margin		%	3.28				3.40				3.70				3.49				3.61
Non-GAAP Measures (Note 1)
Average tangible assets		$	4,495,637				4,473,959				4,489,189				4,544,611				4,668,854
Average tangible equity		$	282,135				319,982				338,712				356,572				367,220
Pre-tax core operating earnings		$	11,575				8,323				13,922				9,078				15,774
Core operating efficiency ratio		%	79.91				86.12				78.95				85.65				76.71
Return on average tangible assets		%	(1.46	)			(3.69	)			(1.57	)			(3.51	)			(1.47	)
Return on average tangible equity		%	(23.21	)			(51.56	)			(20.87	)			(44.73	)			(18.66	)
Tangible capital to tangible assets		%	5.80				6.12				7.08				7.29				7.55
Earning assets repricing at period end:
Percent of earning assets that have fixed rates		%	46				45				45				47				48
Percent of earning assets that have variable rates		%	54				55				55				53				52
Regulatory capital ratios and statistics at period end
Total risk-based capital		%	11.76				11.72				12.59				12.86				12.86
Tier I risk-based capital		%	9.68				9.68				10.59				10.87				10.90
Core capital		%	5.97				6.22				7.17				7.36				7.51
Risk-weighted assets		$	2,713,638				2,855,415				3,021,862				3,104,341				3,206,075
Adjusted total assets		$	4,401,218				4,444,797				4,459,875				4,584,519				4,656,270

Note 1

See page 15 for a reconciliation of non-GAAP measures to GAAP financial measures.

 

8

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BankAtlantic (Bank Operations Business Segment)

Condensed Statements of Operations (unaudited)

 

						For the Three Months Ended
(in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Net interest income		$	34,704				35,766				39,101				37,008				39,459
Provision for loan losses			27,832				40,145				23,012				43,634				32,034
Net interest income after provision for loan losses			6,872				(4,379	)			16,089				(6,626	)			7,425
Non-interest income
Service charges on deposits			12,032				14,080				15,214				15,502				15,048
Other service charges and fees			7,191				7,528				7,495				7,739				7,378
Securities activities, net			(24	)			(34	)			(543	)			309				3,132
Other non-interest income			3,714				2,625				4,869				2,721				2,699
Total non-interest income			22,913				24,199				27,035				26,271				28,257
Non-interest expense
Employee compensation and benefits			18,763				20,028				22,475				24,254				24,374
Occupancy and equipment			12,585				12,996				13,263				13,745				13,581
Advertising and business promotion			1,669				2,333				1,917				2,121				1,934
Professional fees			2,981				5,638				4,942				4,220				2,565
Check losses			299				705				763				521				432
Supplies and postage			870				1,024				929				895				965
Telecommunication			572				632				697				655				529
Cost associated with debt redemption			10				—				—				53				7
Provision for tax certificates			779				800				885				2,134				733
(Gain) loss on sale of real estate			(278	)			663				(442	)			880				(104	)
Impairment, restructuring and exit activities			(399	)			10,219				8,099				2,247				143
Other			8,303				8,286				7,228				7,790				7,562
Total non-interest expense			46,154				63,324				60,756				59,515				52,721
Loss from bank operations business segment before income taxes			(16,369	)			(43,504	)			(17,632	)			(39,870	)			(17,039	)
Provision (benefit) for income taxes			1				(2,261	)			37				—				90
Net loss from bank operations business segment			(16,370	)			(41,243	)			(17,669	)			(39,870	)			(17,129	)
Less: net income attributable to noncontrolling interest			(295	)			(259	)			(225	)			(239	)			(208	)
Net loss attributable to BankAtlantic		$	(16,665	)			(41,502	)			(17,894	)			(40,109	)			(17,337	)

 

9

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BankAtlantic (Bank Operations Business Segment)

Condensed Statements of Financial Condition (unaudited)

 

		As of
(in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
ASSETS
Loans receivable, net		$	2,813,097				3,009,771				3,218,097				3,361,772				3,480,198
Loans held for sale (lower of cost or fair value)			44,542				21,704				2,839				5,861				5,030
Investment securities and FHLB stock			121,394				133,371				150,035				189,120				137,189
Available for sale securities			376,034				424,360				446,591				275,065				243,779
Goodwill			13,081				13,081				13,081				13,081				13,081
Core deposit intangible asset			1,179				1,488				1,796				2,105				2,413
Assets held for sale			36,909				37,333				37,209				—				—
Other assets			1,018,330				828,060				615,828				764,278				806,311
Total assets		$	4,424,566				4,469,168				4,485,476				4,611,282				4,688,001
LIABILITIES AND EQUITY
Deposits
Demand		$	879,820				792,260				809,830				902,486				900,984
Savings			452,533				418,304				411,612				442,142				443,288
NOW			1,307,041				1,370,568				1,288,792				1,496,369				1,501,274
Money market			366,968				354,282				386,091				397,313				361,877
Certificates of deposit			609,538				616,454				601,956				749,948				840,017
Deposits held for sale			390,432				341,146				339,360				—				—
Total deposits			4,006,332				3,893,014				3,837,641				3,988,258				4,047,440
Advances from Federal Home Loan Bank			45,000				170,000				180,000				115,000				152,008
Short term borrowings			20,909				34,435				32,666				34,685				31,797
Subordinated debentures			22,000				22,000				22,000				22,000				22,000
Liabilities held for sale			79				87				100				—				—
Other liabilities			60,178				62,526				81,452				100,904				66,574
Total liabilities			4,154,498				4,182,062				4,153,859				4,260,847				4,319,819
Equity			270,068				287,106				331,617				350,435				368,182
Total liabilities and equity		$	4,424,566				4,469,168				4,485,476				4,611,282				4,688,001

 

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BankAtlantic (Bank Operations Business Segment)

Average Balance Sheet - Yield / Rate Analysis

 

		For the Three Months Ended
		March 31, 2011												March 31, 2010
( in thousands)		Average Balance				Revenue/ Expense				Yield/ Rate				Average Balance				Revenue/ Expense				Yield/ Rate
Loans:
Residential real estate		$	1,175,875				13,894				4.73	%		$	1,513,302				18,901				5.00	%
Commercial real estate			875,825				9,502				4.34				1,102,576				10,843				3.93
Consumer			620,986				4,527				2.92				688,173				4,900				2.85
Commercial business			132,916				2,252				6.78				138,307				2,092				6.05
Small business			300,930				4,687				6.23				309,549				4,843				6.26
Total loans			3,106,532				34,862				4.49				3,751,907				41,579				4.43
Investments			1,117,891				4,559				1.63				603,864				6,136				4.06
Total interest earning assets			4,224,423				39,421				3.73	%			4,355,771				47,715				4.38	%
Goodwill and core deposit intangibles			14,411												15,652
Other non-interest earning assets			271,214												313,083
Total Assets		$	4,510,048											$	4,684,506
Deposits:
Savings		$	468,673				272				0.24	%		$	425,235				333				0.32	%
NOW			1,519,105				1,512				0.40				1,467,103				2,218				0.61
Money market			389,155				442				0.46				360,470				629				0.71
Certificates of deposit			658,050				2,141				1.32				896,074				3,877				1.75
Total interest bearing deposits			3,034,983				4,367				0.58				3,148,882				7,057				0.91
Short-term borrowed funds			30,083				10				0.13				39,376				13				0.13
Advances from FHLB			134,833				115				0.35				173,011				958				2.25
Subordinated debentures and bonds payable			22,000				225				4.15				22,507				228				4.11
Total interest bearing liabilities			3,221,899				4,717				0.59				3,383,776				8,256				0.99
Demand deposits			944,950												864,391
Non-interest bearing other liabilities			52,892												54,312
Total Liabilities			4,219,741												4,302,479
Equity			290,307												382,027
Total liabilities and equity		$	4,510,048											$	4,684,506
Net interest income/net interest spread						$	34,704				3.14	%						$	39,459				3.39	%
Margin
Interest income/interest earning assets											3.73	%											4.38	%
Interest expense/interest earning assets											0.45												0.77
Net interest margin											3.28	%											3.61	%

 

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BankAtlantic (Bank Operations Business Segment)

Allowance for Loan Loss and Credit Quality

 

(in thousands)		For the Three Months Ended
		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Allowance for Loan Losses
Beginning balance		$	161,309				181,760				180,635				169,548				173,588
Charge-offs:
Residential real estate			(8,011	)			(4,272	)			(4,619	)			(5,233	)			(4,181	)
Commercial real estate			(11,277	)			(44,979	)			(5,969	)			(14,146	)			(21,332	)
Commercial business			(464	)			(996	)			—				—				—
Consumer			(7,814	)			(7,009	)			(9,881	)			(11,822	)			(10,771	)
Small business			(2,611	)			(2,409	)			(2,402	)			(2,225	)			(837	)
Total charge-offs			(30,177	)			(59,665	)			(22,871	)			(33,426	)			(37,121	)
Recoveries:
Residential real estate			131				284				383				435				64
Commercial real estate			714				1,210				—				65				62
Commercial business			791				57				—				1				658
Consumer			408				300				294				254				194
Small business			310				126				307				124				69
Total recoveries			2,354				1,977				984				879				1,047
Net charge-offs			(27,823	)			(57,688	)			(21,887	)			(32,547	)			(36,074	)
Transfer to held for sale			(7,081	)			(2,907	)			—				—				—
Provision for loan losses			27,832				40,144				23,012				43,634				32,034
Ending balance		$	154,237				161,309				181,760				180,635				169,548
		As of
		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Credit Quality
Nonaccrual loans
Commercial real estate		$	239,798				243,299				275,057				230,007				168,937
Consumer			13,231				14,120				13,282				13,818				14,428
Small business			12,172				10,879				10,995				12,248				10,971
Residential real estate			81,555				86,538				87,563				83,894				88,262
Commercial business			15,848				16,123				17,190				22,159				18,767
Total Nonaccrual loans			362,604				370,959				404,087				362,126				301,365
Nonaccrual tax certificates			3,402				3,636				2,761				2,836				1,495
Real estate owned			66,310				64,328				58,017				45,492				40,833
Other repossessed assets			—				—				—				88				—
Total nonperforming assets		$	432,316				438,923				464,865				410,542				343,693
Allowance for loan losses to total loans		%	5.20				5.08				5.34				5.08				4.64
Allowance to nonaccrual loans		%	42.54				43.48				44.98				49.88				56.26
Provision to average loans		%	3.58				4.81				2.64				4.86				3.42
Annualized net charge-offs to average loans		%	3.58				6.91				2.51				3.62				3.85
Nonaccrual loans to total assets		%	8.20				8.30				9.01				7.85				6.43
Nonperforming assets to total assets		%	9.77				9.82				10.36				8.90				7.33

 

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BankAtlantic (Bank Operations Business Segment)

Delinquencies, Excluding Non-Accrual Loans, at Period-End

 

($ in thousands)		3/31/2011								12/31/2010								9/30/2010								6/30/2010								3/31/2010
Commercial real estate		$	1,400								31								14,317								7,537								40,642
Consumer			12,025								12,405								12,004								13,181								14,858
Small business			2,200								2,712								2,927								4,182								3,891
Residential real estate			20,528								23,053								17,946								18,472								26,893
Commercial business			19,552				*	**			—								—								—								1,129
Total BankAtlantic		$	55,705								38,201								47,194								43,372								87,413
		3/31/2011								12/31/2010								9/30/2010								6/30/2010								3/31/2010
Commercial real estate		%	0.17				*				0.00				*				1.43				*				0.72				*				3.85				*
Consumer		%	2.00								2.01								1.90								2.04								2.23
Small business		%	0.74								0.89								0.96								1.35								1.26
Residential real estate		%	1.83				*	*			1.88				*	*			1.37				*	*			1.32				*	*			1.83				*	*
Commercial business		%	15.36				*	**			—								—								—								0.84
Total BankAtlantic		%	1.86								1.20								1.39								1.23								2.40

 

*

Excludes $0, $0, $12.0 million, $1.2 million and $0 of Commercial Real Estate loans at March 31, December 31, September 30, June 30, and March 31, 2010, respectively, which had matured and had been approved for renewal or forbearance but were not fully documented at period end. Including these loans, Commercial Real Estate delinquencies were 2.63% and.83% and total BankAtlantic delinquencies would have been 1.75% and 1.26% at September 30, 2010 and June 30, 2010, respectively.

**

Includes $1.0 billion, $1.1 billion, $1.2 billion, $1.3 billion and $1.4 billion of purchased residential loans with delinquencies excluding non-accrual loans of 1.58%, 1.77%, 1.19%, 1.09% and 1.63% as of March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively.

***	Amount represents a loan relationship that is 59 days past due as to maturity and is in the process of renewal.

BankAtlantic (Bank Operations Business Segment)

Loan Provision & Allowance for Loan Losses

 

($ in thousands)		1Q 2011 Loan Provision				Allowance for Loan Losses				% of Reserves to Total Loans
Commercial real estate		$	7,252				78,328				9.32	%
Consumer			2,873				27,510				4.57
Small business			913				10,125				3.40
Residential real estate			17,199				27,566				2.46
Commercial business			(405	)			10,708				8.41
Total BankAtlantic		$	27,832				154,237				5.20	%

 

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BankAtlantic (Bank Operations Business Segment)

Reconciliation of GAAP Financial Measures to Non-GAAP Measures

 

Reconciliation of loss from bank operations business segment before income taxes to pre-tax core operating earnings

 

		For the Three Months Ended
(in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2009
Loss from bank operations business segment before income taxes		$	(16,369	)			(43,504	)			(17,632	)			(39,870	)			(17,039	)
Costs associated with debt redemption			10				—				—				53				7
Provision for tax certificates			779				800				885				2,134				733
Loss (gain) on sale of real estate			(278	)			663				(442	)			880				(104	)
Impairment, restructuring and exit activities			(399	)			10,219				8,099				2,247				143
FDIC special assessment			—				—				—				—				—
Provision for loan losses			27,832				40,145				23,012				43,634				32,034
Non-GAAP pre-tax core operating earnings		$	11,575				8,323				13,922				9,078				15,774

Reconciliation of non-interest expense to core expenses and calculation of core operating efficiency ratio

 

		For the Three Months Ended
($ in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2009
Non-interest expense		$	46,154				63,324				60,756				59,515				52,721
Costs associated with debt redemption			(10	)			—				—				(53	)			(7	)
Provision for tax certificates			(779	)			(800	)			(885	)			(2,134	)			(733	)
Gain (loss) on sale of real estate			278				(663	)			442				(880	)			104
Impairment, restructuring and exit activities			399				(10,219	)			(8,099	)			(2,247	)			(143	)
FDIC special assessment			—				—				—				—				—
Core expenses		$	46,042				51,642				52,214				54,201				51,942
Net interest income			34,704				35,766				39,101				37,008				39,459
Non-interest income			22,913				24,199				27,035				26,271				28,257
Total revenues		$	57,617				59,965				66,136				63,279				67,716
Non-GAAP core operating efficiency ratio			79.91	%			86.12	%			78.95	%			85.65	%			76.71	%

Reconciliation of return on average assets and average equity to return on average tangible assets and average tangible equity

 

		For the Three Months Ended
($ in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2009
Net loss from bank operations business segment		$	(16,370	)			(41,243	)			(17,669	)			(39,870	)			(17,129	)
Average total assets			4,510,048				4,488,677				4,504,217				4,559,964				4,684,506
Average goodwill and core deposit intangibles			(14,411	)			(14,718	)			(15,028	)			(15,353	)			(15,652	)
Average tangible assets			4,495,637				4,473,959				4,489,189				4,544,611				4,668,854
Average equity			290,307				331,957				351,241				368,472				382,027
Average goodwill and core deposit intangibles			(14,411	)			(14,718	)			(15,028	)			(15,353	)			(15,652	)
Other comprehensive loss			6,239				2,743				2,499				3,453				845
Average tangible equity		$	282,135				319,982				338,712				356,572				367,220
Return on average assets from continuing operations			-1.45	%			-3.68	%			-1.57	%			-3.50	%			-1.46	%
Return on average tangible assets from continuing operations - Non-GAAP			-1.46	%			-3.69	%			-1.57	%			-3.51	%			-1.47	%
Return on average equity from continuing operations			-22.56	%			-49.70	%			-20.12	%			-43.28	%			-17.93	%
Return on average tangible equity from continuing operations - Non-GAAP			-23.21	%			-51.56	%			-20.87	%			-44.73	%			-18.66	%

Reconciliation of equity to total tangible capital; Total assets to total tangible assets; The calculation of tangible capital to tangible assets

 

		As of
($ in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2009
Equity		$	270,068				287,106				331,617				350,435				368,182
Goodwill and core deposit intangibles			(14,260	)			(14,569	)			(14,877	)			(15,186	)			(15,494	)
Total tangible capital			255,808				272,537				316,740				335,249				352,688
Total assets			4,424,566				4,469,168				4,485,476				4,611,282				4,688,001
Goodwill and core deposit intangibles			(14,260	)			(14,569	)			(14,877	)			(15,186	)			(15,494	)
Total tangible assets		$	4,410,306			$	4,454,599			$	4,470,599			$	4,596,096			$	4,672,507
Non-GAAP tangible capital to tangible assets			5.80	%			6.12	%			7.08	%			7.29	%			7.55	%

Reconciliation of total deposits to core deposits

 

		As of
(in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2009
Total deposits		$	4,006,332				3,893,014				3,837,641				3,988,258				4,047,440
Non-core deposits held for sale			(75,813	)			(75,010	)			(78,088	)			—				—
Money market			(366,968	)			(354,282	)			(386,091	)			(397,313	)			(361,877	)
Certificates of deposit			(609,538	)			(616,454	)			(601,956	)			(749,948	)			(840,017	)
Core deposits			2,954,013				2,847,268				2,771,506				2,840,997				2,845,546

 

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Parent Company Business Segment

Condensed Statements of Operations (unaudited)

 

		For the Three Months Ended
(in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Net interest expense		$	(3,695	)			(3,716	)			(3,792	)			(3,579	)			(3,485	)
Provsion (recovery) for loan losses			(20	)			498				1,398				4,919				(1,279	)
Net interest income after provision for loan losses			(3,675	)			(4,214	)			(5,190	)			(8,498	)			(2,206	)
Non-interest income
Income from unconsolidated subsidiaries			381				335				293				237				189
Securities activities, net			—				—				(9	)			3				6
Other			209				431				292				271				263
Non-interest income			590				766				576				511				458
Non-interest expense
Employee compensation and benefits			527				(160	)			1,074				901				1,004
Advertising and business promotion			26				56				109				118				10
Professional fees			378				881				1,267				604				322
(Gain)/loss on sale of real estate			(175	)			—				—				610				—
Impairment of real estate owned			2,347				—				66				700				—
Other			329				328				385				460				308
Non-interest expense			3,432				1,105				2,901				3,393				1,644
Loss from parent company activities before income taxes			(6,517	)			(4,553	)			(7,515	)			(11,380	)			(3,392	)
Provision (benefit) for income taxes			—				—				—				—				—
Net loss from parent company business segment		$	(6,517	)			(4,553	)			(7,515	)			(11,380	)			(3,392	)

Parent Company Business Segment

Condensed Statements of Financial Condition - Unaudited

 

		As of
(in thousands)		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
ASSETS
Cash		$	13,112				12,226				12,240				8,395				5,135
Securities			1,508				1,507				1,508				1,508				1,506
Investment in subsidiaries			291,616				313,319				359,368				379,776				413,759
Investment in unconsolidated subsidiaries			10,742				10,361				10,027				9,733				9,496
Other assets			882				945				1,635				2,430				2,329
Total assets		$	317,860				338,358				384,778				401,842				432,225
LIABILITIES AND STOCKHOLDERS’ EQUITY
Subordinated debentures and notes payable		$	325,974				322,385				318,802				315,160				311,707
Other liabilities			1,123				1,687				2,314				9,632				1,288
Total liabilities			327,097				324,072				321,116				324,792				312,995
Stockholders’ equity			(9,237	)			14,286				63,662				77,050				119,230
Total liabilities and stockholders’ equity		$	317,860				338,358				384,778				401,842				432,225

Parent Company Business Segment

Allowance for Loan Loss and Credit Quality

Parent Company and Work-out Subsidiary

 

(in thousands)		For the Three Months Ended
		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Allowance for Loan Losses
Beginning balance		$	830				4,187				7,227				8,049				13,630
Net charge-offs			4				(3,741	)			(4,438	)			(5,741	)			(4,302	)
Transfer to held for sale			—				(114	)			—				—				—
Provision (recovery) for loan losses			(20	)			498				1,398				4,919				(1,279	)
Ending balance		$	814				830				4,187				7,227				8,049
			As of
		3/31/2011				12/31/2010				9/30/2010				6/30/2010				3/31/2010
Credit Quality
Total Loans - gross		$	14,058				17,300				22,793				27,319				38,363
Nonaccrual loans		$	11,360				14,508				19,916				24,358				35,326
Specific reserves			(814	)			(830	)			(4,187	)			(7,227	)			(8,049	)
Nonaccrual loans, net		$	10,546				13,678				15,729				17,131				27,277
Real estate owned			8,835				10,160				9,766				9,832				10,532
Total nonperforming assets		$	19,381				23,838				25,495				26,963				37,809

 

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