##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2006
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the transition period from ___to ___
 Commission file number 34-027228
 BankAtlantic Bancorp, Inc.
  Florida
    
    65-0507804(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)2100 West Cypress Creek RoadFort Lauderdale, Florida
    
    33309(Address of principal executive offices)
    
    (Zip Code)
 (954) 940-5000   Not Applicable
 þ o
  þ o o
 o þ
  Outstanding atTitle of Each Class
    
    November 2, 2006Class A Common Stock, par value $0.01 per share
    
    56,252,899Class B Common Stock, par value $0.01 per share
    
    4,876,124




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TABLE OF CONTENTS
 PagePart I. FINANCIAL INFORMATIONReferenceItem 1. Financial Statements
    
    
    1-27Consolidated Statements of Financial Condition  September 30, 2006 and 2005 and December 31, 2005   Unaudited
    
    
    4Consolidated Statements of Operations  For the Three and Nine Months Ended September 30, 2006 and 2005 - Unaudited
    
    
    5-6Consolidated Statements of Stockholders Equity and Comprehensive Income  For the Nine Months Ended September 30, 2006 and 2005  Unaudited
    
    
    7Consolidated Statements of Cash Flows  For the Nine Months Ended September 30, 2006 and 2005 - Unaudited
    
    
    8-10Notes to Consolidated Financial Statements  Unaudited
    
    
    11-27Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    28-46Item 3. Quantitative and Qualitative Disclosures about Market Risk
    
    
    47-49Item 4. Controls and Procedures
    
    
    50Part II. OTHER INFORMATIONItem 1A. Risk Factors
    
    
    51Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    51Item 6. Exhibits
    
    
    52Signatures
    
    
    53EX-31.1 Section 302 Certification of CEOEX-31.2 Section 302 Certification of CFOEX-32.1 Section 906 Certification of CEOEX-32.2 Section 906 Certification of CFO




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BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION  UNAUDITED
 September 30,
    
    
    December 31,
    
    
    September 30,(In thousands, except share data)
    
    2006
    
    
    2005
    
    
    2005ASSETSCash and due from depository institutions
    
    $
    134,473
    
    
    $
    167,032
    
    
    $
    140,346Federal funds sold and other short-term investments
    
    
    1,481
    
    
    
    3,229
    
    
    
    11,802Securities owned (at fair value)
    
    
    186,588
    
    
    
    180,292
    
    
    
    120,298Securities available for sale (at fair value)
    
    
    663,820
    
    
    
    674,544
    
    
    
    702,176Investment securities and tax certificates (approximate fair value:$401,707, $364,122 and $366,456)
    
    
    398,492
    
    
    
    364,444
    
    
    
    366,884Federal Home Loan Bank stock, at cost which approximates
fair value
    
    
    87,867
    
    
    
    69,931
    
    
    
    78,931Loans receivable, net of allowance for loan losses of
$42,517, $41,192 and $40,695
    
    
    4,622,964
    
    
    
    4,622,234
    
    
    
    4,664,456Residential loans held for sale
    
    
    15,251
    
    
    
    2,538
    
    
    
    8,680Accrued interest receivable
    
    
    46,169
    
    
    
    41,490
    
    
    
    39,766Real estate held for development and sale
    
    
    24,420
    
    
    
    21,177
    
    
    
    24,493Investments in unconsolidated subsidiaries
    
    
    13,359
    
    
    
    12,464
    
    
    
    12,510Office properties and equipment, net
    
    
    201,509
    
    
    
    154,120
    
    
    
    140,466Deferred tax asset, net
    
    
    29,602
    
    
    
    29,615
    
    
    
    25,591Goodwill
    
    
    76,674
    
    
    
    76,674
    
    
    
    76,674Core deposit intangible asset
    
    
    7,221
    
    
    
    8,395
    
    
    
    8,796Due from clearing agent
    
    
    13,579
    
    
    
    
    
    
    
    15,650Other assets
    
    
    46,181
    
    
    
    43,232
    
    
    
    45,194Total assets
    
    $
    6,569,650
    
    
    $
    6,471,411
    
    
    $
    6,482,713LIABILITIES AND STOCKHOLDERS EQUITY
LIABILITIES:DepositsDemand
    
    $
    1,011,531
    
    
    $
    1,019,949
    
    
    $
    1,017,071NOW
    
    
    723,211
    
    
    
    755,708
    
    
    
    673,803Savings
    
    
    370,169
    
    
    
    313,889
    
    
    
    303,348Money market
    
    
    695,591
    
    
    
    846,441
    
    
    
    921,585Certificates of deposits
    
    
    874,956
    
    
    
    816,689
    
    
    
    777,743Total deposits
    
    
    3,675,458
    
    
    
    3,752,676
    
    
    
    3,693,550Advances from FHLB
    
    
    1,687,062
    
    
    
    1,283,532
    
    
    
    1,485,649Securities sold under agreements to repurchase
    
    
    91,512
    
    
    
    116,026
    
    
    
    147,966Federal funds purchased and other short term borrowings
    
    
    51,435
    
    
    
    139,475
    
    
    
    28,042Secured borrowings
    
    
    
    
    
    
    138,270
    
    
    
    129,891Subordinated debentures, notes and bonds payable
    
    
    30,192
    
    
    
    39,092
    
    
    
    40,702Junior subordinated debentures
    
    
    263,266
    
    
    
    263,266
    
    
    
    263,266Securities sold but not yet purchased
    
    
    68,820
    
    
    
    35,177
    
    
    
    20,688Due to clearing agent
    
    
    40,842
    
    
    
    24,486
    
    
    
    Other liabilities
    
    
    136,515
    
    
    
    163,075
    
    
    
    149,567Total liabilities
    
    
    6,045,102
    
    
    
    5,955,075
    
    
    
    5,959,321Commitments and contingencies (See note 11)STOCKHOLDERS EQUITY:Preferred stock, $.01 par value, 10,000,000 shares authorized;
none issued and outstanding
    
    
    
    
    
    
    
    
    
    
    Class A common stock, $.01 par value, authorized 80,000,000 shares;
issued and outstanding 56,114,600, 55,884,089 and 55,862,486 shares
    
    
    562
    
    
    
    559
    
    
    
    559Class B common stock, $.01 par value, authorized 45,000,000 shares;
issued and outstanding 4,876,124, 4,876,124, and 4,876,124 shares
    
    
    49
    
    
    
    49
    
    
    
    49Additional paid-in capital
    
    
    258,887
    
    
    
    261,720
    
    
    
    261,587Unearned compensation  restricted stock grants
    
    
    
    
    
    
    (936
    )
    
    
    (1,021
    )Retained earnings
    
    
    271,281
    
    
    
    261,279
    
    
    
    265,082Total stockholders equity before accumulated
other comprehensive loss
    
    
    530,779
    
    
    
    522,671
    
    
    
    526,256Accumulated other comprehensive loss
    
    
    (6,231
    )
    
    
    (6,335
    )
    
    
    (2,864
    )Total stockholders equity
    
    
    524,548
    
    
    
    516,336
    
    
    
    523,392Total liabilities and stockholders equity
    
    $
    6,569,650
    
    
    $
    6,471,411
    
    
    $
    6,482,713
  4




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BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED
STATEMENTS OF OPERATIONS-UNAUDITED
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(In thousands, except share and per share data)
    
    2006
    
    
    2005
    
    
    2006
    
    
    2005Interest income:Interest and fees on loans
    
    $
    80,790
    
    
    
    75,747
    
    
    $
    231,941
    
    
    $
    217,845Interest on debt securities available for sale
    
    
    4,483
    
    
    
    4,741
    
    
    
    13,102
    
    
    
    15,294Interest on tax exempt securities
    
    
    4,183
    
    
    
    3,963
    
    
    
    12,918
    
    
    
    11,332Interest and dividends on other investment securities
    
    
    6,039
    
    
    
    4,952
    
    
    
    14,811
    
    
    
    13,759Broker dealer interest and dividends
    
    
    3,477
    
    
    
    3,526
    
    
    
    10,639
    
    
    
    9,587Total interest income
    
    
    98,972
    
    
    
    92,929
    
    
    
    283,411
    
    
    
    267,817Interest expense:Interest on deposits
    
    
    15,095
    
    
    
    10,519
    
    
    
    41,701
    
    
    
    28,348Interest on advances from FHLB
    
    
    18,509
    
    
    
    17,332
    
    
    
    45,655
    
    
    
    46,610Interest on securities sold under agreements to
repurchase and federal funds purchased
    
    
    5,078
    
    
    
    2,108
    
    
    
    12,584
    
    
    
    6,853Interest on secured borrowings
    
    
    
    
    
    
    2,637
    
    
    
    2,401
    
    
    
    7,281Interest on subordinated debentures, notes and
bonds payable, and junior subordinated debentures
    
    
    7,957
    
    
    
    6,392
    
    
    
    23,432
    
    
    
    18,380Capitalized interest on real estate development
    
    
    (75
    )
    
    
    (477
    )
    
    
    (844
    )
    
    
    (1,366
    )Total interest expense
    
    
    46,564
    
    
    
    38,511
    
    
    
    124,929
    
    
    
    106,106Net interest income
    
    
    52,408
    
    
    
    54,418
    
    
    
    158,482
    
    
    
    161,711Provision for (recovery from) loan losses
    
    
    271
    
    
    
    (3,410
    )
    
    
    414
    
    
    
    (6,506
    )Net interest income after provision for (recovery from)
loan losses
    
    
    52,137
    
    
    
    57,828
    
    
    
    158,068
    
    
    
    168,217Non-interest income:Broker/dealer revenue
    
    
    45,205
    
    
    
    50,368
    
    
    
    151,148
    
    
    
    188,969Service charges on deposits
    
    
    24,008
    
    
    
    16,415
    
    
    
    64,381
    
    
    
    44,148Other service charges and fees
    
    
    6,779
    
    
    
    5,824
    
    
    
    20,354
    
    
    
    16,911Income (loss) from real estate operations
    
    
    
    
    
    
    1,142
    
    
    
    (982
    )
    
    
    5,038Income from unconsolidated subsidiaries
    
    
    266
    
    
    
    142
    
    
    
    1,364
    
    
    
    410Securities activities, net
    
    
    2,243
    
    
    
    181
    
    
    
    7,614
    
    
    
    373Gains associated with debt redemption
    
    
    
    
    
    
    
    
    
    
    1,528
    
    
    
    (Losses) gains on sales of office properties
and equipment, net
    
    
    (3
    )
    
    
    
    
    
    
    1,775
    
    
    
    1,215Other
    
    
    2,915
    
    
    
    2,432
    
    
    
    8,157
    
    
    
    7,313Total non-interest income
    
    
    81,413
    
    
    
    76,504
    
    
    
    255,339
    
    
    
    264,377Non-interest expense:Employee compensation and benefits
    
    
    79,573
    
    
    
    68,455
    
    
    
    239,784
    
    
    
    212,641Occupancy and equipment
    
    
    19,181
    
    
    
    14,853
    
    
    
    52,944
    
    
    
    42,043Impairment of office properties and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,706Advertising and promotion
    
    
    10,383
    
    
    
    6,667
    
    
    
    28,984
    
    
    
    21,034Professional fees
    
    
    5,028
    
    
    
    4,207
    
    
    
    13,467
    
    
    
    12,604Communications
    
    
    3,472
    
    
    
    3,371
    
    
    
    11,356
    
    
    
    10,084Floor broker and clearing fees
    
    
    1,823
    
    
    
    2,305
    
    
    
    6,684
    
    
    
    6,685Cost associated with debt redemption
    
    
    
    
    
    
    
    
    
    
    1,457
    
    
    
    Check losses
    
    
    2,855
    
    
    
    1,434
    
    
    
    5,976
    
    
    
    2,549Other
    
    
    10,068
    
    
    
    9,892
    
    
    
    33,162
    
    
    
    28,766Total non-interest expense
    
    
    132,383
    
    
    
    111,184
    
    
    
    393,814
    
    
    
    340,112Income before income taxes
    
    
    1,167
    
    
    
    23,148
    
    
    
    19,593
    
    
    
    92,482(Benefit from) provision for income taxes
    
    
    (1,171
    )
    
    
    6,888
    
    
    
    2,421
    
    
    
    31,807Net income
    
    $
    2,338
    
    
    $
    16,260
    
    
    $
    17,172
    
    
    $
    60,675
   5




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BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS  UNAUDITED
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Earnings per shareBasic earnings per share
    
    $
    0.04
    
    
    $
    0.27
    
    
    $
    0.28
    
    
    $
    1.01Diluted earnings per share
    
    $
    0.04
    
    
    $
    0.26
    
    
    $
    0.27
    
    
    $
    0.95Cash dividends per Class A share
    
    $
    0.041
    
    
    $
    0.038
    
    
    $
    0.117
    
    
    $
    0.108Cash dividends per Class B share
    
    $
    0.041
    
    
    $
    0.038
    
    
    $
    0.117
    
    
    $
    0.108Basic weighted average number of common shares outstanding
    
    
    61,045,711
    
    
    
    60,555,158
    
    
    
    61,125,242
    
    
    
    60,361,595Diluted weighted average number of common and common
equivalent shares outstanding
    
    
    62,412,365
    
    
    
    63,193,131
    
    
    
    62,663,606
    
    
    
    63,175,886
  6




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BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME
 For of the Nine Months Ended September 30, 2005 and 2006  Unaudited
 Unearned
    
    
    Accumul-Compen-
    
    
    atedAddi-
    
    
    
    
    
    
    sation
    
    
    OtherCompre-
    
    
    
    
    
    
    tional
    
    
    
    
    
    
    Restricted
    
    
    Compre-hensive
    
    
    Common
    
    
    Paid-in
    
    
    Retained
    
    
    Stock
    
    
    hensive(In thousands)
    
    Income
    
    
    Stock
    
    
    Capital
    
    
    Earnings
    
    
    Grants
    
    
    loss
    
    
    TotalBALANCE, DECEMBER 31, 2004
    
    
    
    
    
    $
    601
    
    
    $
    259,702
    
    
    $
    210,955
    
    
    $
    (1,001
    )
    
    $
    (992
    )
    
    $
    469,265Net income
    
    $
    60,675
    
    
    
    
    
    
    
    
    
    
    
    60,675
    
    
    
    
    
    
    
    
    
    
    
    60,675Other comprehensive income (loss), net of tax:Unrealized losses on securities available for sale
(less income tax benefit of $1,104)
    
    
    (1,633
    )Reclassification adjustment for net gain
included in net income (less income tax
expense of $134)
    
    
    (239
    )Other comprehensive loss
    
    
    (1,872
    )Comprehensive income (1)
    
    $
    58,803Dividends on Class A common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,021
    )
    
    
    
    
    
    
    
    
    
    
    (6,021
    )Dividends on Class B common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (527
    )
    
    
    
    
    
    
    
    
    
    
    (527
    )Issuance of Class A common stock upon exercise
of stock options
    
    
    
    
    
    
    10
    
    
    
    2,223
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,233Issuance of Class A restricted stock
    
    
    
    
    
    
    
    
    
    
    174
    
    
    
    
    
    
    
    (174
    )
    
    
    
    
    
    
    Tax effect relating to share-based
compensation
    
    
    
    
    
    
    
    
    
    
    4,500
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,500Retirement of Class A common stock relating to
exercise of stock options
    
    
    
    
    
    
    (3
    )
    
    
    (4,665
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,668
    )Amortization
of unearned compensation - restricted stock grants
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    154
    
    
    
    
    
    
    
    154Retirement of Ryan Beck common stock
    
    
    
    
    
    
    
    
    
    
    (347
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (347
    )Net change in accumulated other comprehensive
loss, net of income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,872
    )
    
    
    (1,872
    )BALANCE, SEPTEMBER 30, 2005
    
    
    
    
    
    $
    608
    
    
    $
    261,587
    
    
    $
    265,082
    
    
    $
    (1,021
    )
    
    $
    (2,864
    )
    
    $
    523,392BALANCE, DECEMBER 31, 2005
    
    
    
    
    
    $
    608
    
    
    $
    261,720
    
    
    $
    261,279
    
    
    $
    (936
    )
    
    $
    (6,335
    )
    
    $
    516,336Net income
    
    $
    17,172
    
    
    
    
    
    
    
    
    
    
    
    17,172
    
    
    
    
    
    
    
    
    
    
    
    17,172Other comprehensive income (loss), net of tax:Unrealized gain on securities available for sale
(less income tax expense of $2,836)
    
    
    4,781Reclassification adjustment for net gain
included in net income (less income tax
expense of $2,937)
    
    
    (4,677
    )Other comprehensive income
    
    
    104Comprehensive income (1)
    
    $
    17,276Dividends on Class A common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,600
    )
    
    
    
    
    
    
    
    
    
    
    (6,600
    )Dividends on Class B common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (570
    )
    
    
    
    
    
    
    
    
    
    
    (570
    )Issuance of Class A common stock upon exercise
of stock options
    
    
    
    
    
    
    14
    
    
    
    5,859
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,873Tax effect relating to share-based compensation
    
    
    
    
    
    
    
    
    
    
    3,664
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,664Retirement of Class A common stock relating to
exercise of stock options
    
    
    
    
    
    
    (5
    )
    
    
    (7,261
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,266
    )Purchase and retirement of Class A common stock
    
    
    
    
    
    
    (5
    )
    
    
    (7,828
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,833
    )Share based compensation expense
    
    
    
    
    
    
    
    
    
    
    3,668
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,668Adoption of FAS 123R
    
    
    
    
    
    
    (1
    )
    
    
    (935
    )
    
    
    
    
    
    
    936
    
    
    
    
    
    
    
    Net change in accumulated other comprehensive
income, net of income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    104
    
    
    
    104BALANCE, SEPTEMBER 30, 2006
    
    
    
    
    
    $
    611
    
    
    $
    258,887
    
    
    $
    271,281
    
    
    $
    
    
    
    $
    (6,231
    )
    
    $
    524,548
 
 (1)
    
    Comprehensive income for the three months ended September 30, 2006 and 2005 was $8.8 million and $14.7 million, respectively.  7




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS  UNAUDITED
 For the Nine MonthsEnded September 30,(In thousands)
    
    2006
    
    
    2005Operating activities:Net income
    
    $
    17,172
    
    
    $
    60,675Adjustment to reconcile net income to net cash
provided by operating activities:Provision (recovery) and valuation allowances, net (1)
    
    
    639
    
    
    
    (6,306
    )Depreciation, amortization and accretion, net
    
    
    16,472
    
    
    
    13,774Amortization of deferred revenue
    
    
    3,619
    
    
    
    2,221Amortization of intangible assets
    
    
    1,174
    
    
    
    1,226Share-based compensation expense
    
    
    3,668
    
    
    
    Tax benefits from share-based compensation
    
    
    (3,664
    )
    
    
    Securities activities, net
    
    
    (7,614
    )
    
    
    (373
    )Net gains on sale of real estate owned
    
    
    (1,055
    )
    
    
    (1,264
    )Net gains on sales of loans held for sale
    
    
    (469
    )
    
    
    (521
    )Gains on sales of property and equipment
    
    
    (1,775
    )
    
    
    (293
    )Gain on sale of branch
    
    
    
    
    
    
    (922
    )Decrease (increase) in deferred tax benefits
    
    
    114
    
    
    
    (4,218
    )Net gains associated with debt redemptions
    
    
    (71
    )
    
    
    Impairment of office properties and equipment
    
    
    
    
    
    
    3,706Increase in forgivable notes receivable, net
    
    
    (4,792
    )
    
    
    (3,366
    )Originations of loans held for sale, net
    
    
    (79,935
    )
    
    
    (113,021
    )Proceeds from sales of loans held for sale
    
    
    67,692
    
    
    
    109,509(Increase) decrease in real estate held for development and sale
    
    
    (2,790
    )
    
    
    3,199(Increase) decrease in securities owned, net
    
    
    (6,296
    )
    
    
    5,145Increase in accrued interest receivable
    
    
    (4,679
    )
    
    
    (3,784
    )Increase in other assets
    
    
    (3,168
    )
    
    
    (7,797
    )Increase (decrease) in securities sold but not yet purchased
    
    
    33,643
    
    
    
    (18,774
    )Increase in due to clearing agent
    
    
    2,777
    
    
    
    969(Decrease) increase in other liabilities
    
    
    (29,395
    )
    
    
    8,316Net cash provided by operating activities
    
    
    1,267
    
    
    
    48,101
   8




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS  UNAUDITED
 For the Nine MonthsEnded September 30,(In thousands)
    
    2006
    
    
    2005Investing activities:Proceeds from redemption and maturities of investment
securities and tax certificates
    
    
    149,232
    
    
    
    163,227Purchase of investment securities and tax certificates
    
    
    (182,994
    )
    
    
    (223,338
    )Purchase of securities available for sale
    
    
    (121,619
    )
    
    
    (222,425
    )Proceeds from sales and maturities of securities
available for sale
    
    
    140,011
    
    
    
    265,290Purchases of FHLB stock
    
    
    (41,850
    )
    
    
    (23,974
    )Redemption of FHLB stock
    
    
    23,914
    
    
    
    23,662Investments in unconsolidated subsidiaries
    
    
    (5,444
    )
    
    
    (4,600
    )Distributions from unconsolidated subsidiaries
    
    
    4,549
    
    
    
    Net repayments (purchases and originations) of loans
    
    
    (113,861
    )
    
    
    15,917Proceeds from sales of real estate owned
    
    
    3,338
    
    
    
    3,103Proceeds from the sale of property and equipment
    
    
    35
    
    
    
    664Purchases of office property and equipment
    
    
    (58,821
    )
    
    
    (26,117
    )Net cash used in investing activities
    
    
    (203,510
    )
    
    
    (28,591
    )Financing activities:Net (decrease) increase in deposits
    
    
    (77,218
    )
    
    
    254,064Repayments of FHLB advances
    
    
    (1,826,344
    )
    
    
    (1,073,749
    )Proceeds from FHLB advances
    
    
    2,230,000
    
    
    
    1,015,000Decrease in securities sold under agreements
to repurchase
    
    
    (24,514
    )
    
    
    (148,677
    )Decrease in federal funds purchased
    
    
    (88,040
    )
    
    
    (76,958
    )Proceeds from secured borrowings
    
    
    
    
    
    
    48,016Repayments of secured borrowings
    
    
    (26,516
    )
    
    
    Repayment of notes and bonds payable
    
    
    (13,900
    )
    
    
    (1,039
    )Proceeds from notes payable
    
    
    5,000
    
    
    
    4,000Cash outflows from the sale of branch
    
    
    
    
    
    
    (13,605
    )Capital contributions in managed fund by investors
    
    
    2,200
    
    
    
    Excess tax benefits from share-based compensation
    
    
    3,664
    
    
    
    Proceeds from issuance of Class A common stock
    
    
    1,324
    
    
    
    1,084Payment of the minimum withholding tax upon the exercise
of stock options
    
    
    (2,717
    )
    
    
    (3,519
    )Purchase and retirement of Class A common stock
    
    
    (7,833
    )
    
    
    Purchase of subsidiary common stock
    
    
    
    
    
    
    (491
    )Dividends paid
    
    
    (7,170
    )
    
    
    (6,548
    )Net cash provided by (used in) financing activities
    
    
    167,936
    
    
    
    (2,422
    )(Decrease) increase in cash and cash equivalents
    
    
    (34,307
    )
    
    
    17,088Cash and cash equivalents at the beginning of period
    
    
    170,261
    
    
    
    135,060Cash and cash equivalents at end of period
    
    $
    135,954
    
    
    $
    152,148
   9




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS  UNAUDITED
 For the Nine MonthsEnded September 30,(In thousands)
    
    2006
    
    
    2005Cash paid forInterest on borrowings and deposits
    
    $
    125,255
    
    
    $
    97,284Income taxes
    
    
    22,629
    
    
    
    10,632Supplementary disclosure of non-cash investing and
financing activities:Loans transferred to REO
    
    
    2,755
    
    
    
    2,059Decreases in current income taxes payable from the tax
effect of fair value of employee stock options
    
    
    
    
    
    
    4,500Reduction in loans participations sold accounted for
as secured borrowings
    
    
    111,754
    
    
    
    Exchange of branch facilities
    
    
    2,350
    
    
    
    Change in accumulated other comprehensive income
    
    
    104
    
    
    
    (1,872
    )Change in deferred taxes on other comprehensive income
    
    
    101
    
    
    
    (1,104
    )Securities purchased pending settlement
    
    
    680
    
    
    
    Issuance and retirement of Class A common stock accepted
as consideration for the exercise price of stock options
    
    
    4,549
    
    
    
    1,149
 
 (1)
    
    Provision (recoveries) and valuation allowances represents provision for (recovery from)
loan losses, REO and tax certificates.  10




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  UNAUDITED
 1. Presentation of Interim Financial Statements and Significant Accounting Policies
      Allowance for Loan Losses
   11




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
    
    Delinquency and charge-off levels and trends;
    
    Problem loans and non-accrual levels and trends;
    
    Lending policy and underwriting procedures;
    
    Lending management and staff;
    
    Nature and volume of portfolio;
    
    Economic and business conditions;
    
    Concentration of credit;
    
    Quality of loan review system; and
    
    External factors
   2. Stock Based Compensation
    12




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands, except share data)
    
    2006
    
    
    2005
    
    
    2006
    
    
    2005Net income, as reported
    
    $
    2,338
    
    
    $
    16,260
    
    
    $
    17,172
    
    
    $
    60,675Add: Stock-based employee compensation
expense included in reported net
income,
net of related income tax effects
    
    
    1,422
    
    
    
    69
    
    
    
    3,668
    
    
    
    154Deduct: Total stock-based employee
compensation expense determined under
fair value based method for all awards,
net of related income tax effects
    
    
    (1,422
    )
    
    
    (804
    )
    
    
    (3,668
    )
    
    
    (1,826
    )Pro forma net income
    
    $
    2,338
    
    
    $
    15,525
    
    
    $
    17,172
    
    
    $
    59,003Earnings per share:Basic as reported
    
    $
    0.04
    
    
    $
    0.27
    
    
    $
    0.28
    
    
    $
    1.01Basic pro forma
    
    $
    N/A
    
    
    $
    0.26
    
    
    $
    N/A
    
    
    $
    0.98Diluted as reported
    
    $
    0.04
    
    
    $
    0.26
    
    
    $
    0.27
    
    
    $
    0.95Diluted pro forma
    
    $
    N/A
    
    
    $
    0.25
    
    
    $
    N/A
    
    
    $
    0.92
  Class A
    
    
    WeightedNonvested
    
    
    AverageRestricted
    
    
    Grant DateStock
    
    
    Fair ValueOutstanding at December 31, 2004
    
    
    147,500
    
    
    $
    7.54Vested
    
    
    (21,817
    )
    
    
    8.41Forfeited
    
    
    
    
    
    
    Issued
    
    
    9,268
    
    
    
    18.88Outstanding at September 30, 2005
    
    
    134,951
    
    
    $
    8.18Outstanding at December 31, 2005
    
    
    132,634
    
    
    $
    8.00Vested
    
    
    (29,481
    )
    
    
    10.42Forfeited
    
    
    
    
    
    
    Issued
    
    
    31,389
    
    
    
    14.74Outstanding at September 30, 2006
    
    
    134,542
    
    
    $
    9.04
   13




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
   Employees
    
    DirectorsStock Price
    
    $
    14.76
    
    
    $
    14.53Exercise Price
    
    $
    14.76
    
    
    $
    14.53Interest Rate
    
    
    5.19
    %
    
    
    4.94
    %Dividend Rate
    
    
    1.03
    %
    
    
    1.05
    %Volatility
    
    
    31.43
    %
    
    
    31.83
    %Option Life (years)
    
    
    7.50
    
    
    
    5.00Option Value
    
    $
    6.02
    
    
    $
    4.84Annual Forfeiture Rate
    
    
    3.00
    %
    
    
    0
    %
  Employees
    
    DirectorsStock Price
    
    $
    19.02
    
    
    $
    18.88Exercise Price
    
    $
    19.02
    
    
    $
    18.88Interest Rate
    
    
    4.10
    %
    
    
    4.10
    %Dividend Rate
    
    
    .74
    %
    
    
    .74
    %Volatility
    
    
    31.00
    %
    
    
    31.00
    %Option Life (years)
    
    
    7.00
    
    
    
    7.00Option Value
    
    $
    7.24
    
    
    $
    7.36Annual Forfeiture Rate
    
    
    2.00
    %
    
    
    0
    %
 14




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  Class AOutstandingOptionsOutstanding at December 31, 2004
    
    
    6,174,845Exercised
    
    
    (901,537
    )Forfeited
    
    
    (63,452
    )Issued
    
    
    811,071Outstanding at September 30, 2005
    
    
    6,020,927Outstanding at December 31, 2005
    
    
    6,039,253Exercised
    
    
    (1,422,261
    )Forfeited
    
    
    (201,839
    )Issued
    
    
    951,268Outstanding at September 30, 2006
    
    
    5,366,421Available for grant at September 30, 2006
    
    
    4,221,754
  As of or for the NineMonths Ended September 30,2006
    
    2005Weighted average exercise price of options
outstanding
    
    $
    11.22
    
    
    $
    9.04Weighted average exercise price of options exercised
    
    $
    4.13
    
    
    $
    2.48Weighted average price of options forfeited
    
    $
    14.14
    
    
    $
    11.53Weighted average remaining contractual life in years
    
    
    6.5
    
    
    
    5.7
  15




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Ryan Beck Stock Option Plan:
   Ryan BeckOutstandingOptionsOutstanding at December 31, 2004
    
    
    2,245,500Exercised
    
    
    Forfeited
    
    
    (7,500
    )Issued
    
    
    22,000Outstanding at September 30, 2005
    
    
    2,260,000Outstanding at December 31, 2005
    
    
    2,069,000Exercised
    
    
    Forfeited
    
    
    (82,000
    )Issued
    
    
    377,500Outstanding at September 30, 2006
    
    
    2,364,500Available for grant at September 30, 2006
    
    
    73,000
 As of or for the NineMonths Ended September 30,2006
    
    2005Weighted average exercise price of options
outstanding
    
    $
    3.82
    
    
    $
    3.00Weighted average exercise price of options exercised
    
    $
    
    
    
    $
    Weighted average price of options forfeited
    
    $
    4.28
    
    
    $
    5.26Weighted average remaining contractual life in years
    
    
    6.7
    
    
    
    6.8
  For the Nine MonthsEnded September 30,2006
    
    2005Stock Price
    
    $
    8.74
    
    
    $
    5.46Exercise Price
    
    $
    8.74
    
    
    $
    5.46Interest Rate
    
    
    4.55
    %
    
    
    4.39
    %Dividend Rate
    
    
    0.82
    %
    
    
    0.83
    %Volatility
    
    
    38.25
    %
    
    
    40.90
    %Option Life (years)
    
    
    7.00
    
    
    
    6.00Option Value
    
    $
    3.86
    
    
    $
    2.33Annual Forfeiture Rate
    
    
    2.96
    %
    
    
    
    %
   16




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  3. Advances From the Federal Home Loan Bank
   4. Impairment of Office Properties and Equipment
  5. Defined Benefit Pension Plan
  For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Service cost benefits earned during the period
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Interest cost on projected benefit obligation
    
    
    407
    
    
    
    388
    
    
    
    1,221
    
    
    
    1,164Expected return on plan assets
    
    
    (547
    )
    
    
    (525
    )
    
    
    (1,641
    )
    
    
    (1,575
    )Amortization of unrecognized net gains and
losses
    
    
    237
    
    
    
    168
    
    
    
    711
    
    
    
    504Net periodic pension expense
    
    $
    97
    
    
    $
    31
    
    
    $
    291
    
    
    $
    93
  17




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 6. Securities Owned
   September 30,
    
    
    December 31,
    
    
    September 30,2006
    
    
    2005
    
    
    2005State and municipal
obligations
    
    $
    46,310
    
    
    $
    76,568
    
    
    $
    28,766Corporate debt
    
    
    5,081
    
    
    
    3,410
    
    
    
    8,624Obligations of U.S.
Government agencies
    
    
    88,925
    
    
    
    45,827
    
    
    
    33,119Equity securities
    
    
    16,209
    
    
    
    23,645
    
    
    
    19,905Mutual funds and other
    
    
    22,591
    
    
    
    28,359
    
    
    
    27,714Certificates of deposit
    
    
    7,472
    
    
    
    2,483
    
    
    
    2,170$
    186,588
    
    
    $
    180,292
    
    
    $
    120,298
   September 30,
    
    
    December 31,
    
    
    September 30,2006
    
    
    2005
    
    
    2005Equity securities
    
    $
    18,325
    
    
    $
    3,780
    
    
    $
    3,788Corporate debt
    
    
    928
    
    
    
    1,332
    
    
    
    1,440State and municipal
obligations
    
    
    1,101
    
    
    
    41
    
    
    
    41Obligations of U.S.
Government agencies
    
    
    48,198
    
    
    
    29,653
    
    
    
    14,963Certificates of deposit
    
    
    268
    
    
    
    371
    
    
    
    456$
    68,820
    
    
    $
    35,177
    
    
    $
    20,688
   18




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 7. Loans Receivable
  September 30,
    
    
    December 31,
    
    
    September 30,2006
    
    
    2005
    
    
    2005Real estate loans:Residential
    
    $
    2,171,795
    
    
    $
    2,043,055
    
    
    $
    2,159,344Construction and development
    
    
    908,198
    
    
    
    1,339,576
    
    
    
    1,420,435Commercial
    
    
    1,065,060
    
    
    
    1,060,245
    
    
    
    1,004,766Small business
    
    
    180,200
    
    
    
    151,924
    
    
    
    145,570Loans to Levitt Corporation
    
    
    
    
    
    
    223
    
    
    
    1,113Other loans:Home equity
    
    
    542,537
    
    
    
    513,813
    
    
    
    505,746Commercial business
    
    
    159,086
    
    
    
    89,752
    
    
    
    87,894Small business  non-mortgage
    
    
    92,294
    
    
    
    83,429
    
    
    
    76,990Consumer loans
    
    
    15,120
    
    
    
    21,469
    
    
    
    13,580Deposit overdrafts
    
    
    8,337
    
    
    
    5,694
    
    
    
    5,205Discontinued loans products (1)
    
    
    269
    
    
    
    1,207
    
    
    
    6,156Total gross loans
    
    
    5,142,896
    
    
    
    5,310,387
    
    
    
    5,426,799Adjustments:Undisbursed portion of loans in
process
    
    
    (477,944
    )
    
    
    (649,296
    )
    
    
    (724,043
    )Premiums related to purchased loans
    
    
    2,195
    
    
    
    5,566
    
    
    
    5,968Deferred fees
    
    
    (1,666
    )
    
    
    (3,231
    )
    
    
    (3,573
    )Allowance for loan losses
    
    
    (42,517
    )
    
    
    (41,192
    )
    
    
    (40,695
    )Loans receivable  net
    
    $
    4,622,964
    
    
    $
    4,622,234
    
    
    $
    4,664,456
 
 (1)
    
    Discontinued loan products consist of lease financings and indirect consumer
loans. These loan products were discontinued during prior periods.  8. Real Estate Held for Development and Sale
   September 30,
    
    
    December 31,
    
    
    September 30,2006
    
    
    2005
    
    
    2005Land and land
development costs
    
    $
    12,791
    
    
    $
    9,921
    
    
    $
    10,977Construction costs
    
    
    6,577
    
    
    
    8,264
    
    
    
    9,329Other costs
    
    
    5,052
    
    
    
    2,992
    
    
    
    2,720Branch banking facilities
    
    
    
    
    
    
    
    
    
    
    1,467Total
    
    $
    24,420
    
    
    $
    21,177
    
    
    $
    24,493
 19




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Sales of real estate
    
    $
    
    
    
    $
    4,872
    
    
    $
    7,613
    
    
    $
    19,672Cost of sales on real
estate
    
    
    
    
    
    
    3,730
    
    
    
    8,595
    
    
    
    14,634Income (loss) from
real estate operations
    
    $
    
    
    
    $
    1,142
    
    
    $
    (982
    )
    
    $
    5,038
 9. Related Parties
    Class A
    
    
    WeightedCommon
    
    
    AverageStock
    
    
    PriceOptions outstanding
    
    
    306,598
    
    
    $
    10.48Options nonvested
    
    
    245,143
    
    
    $
    11.39
  For the
    
    
    For theThree Months
    
    
    Nine MonthsEnded
    
    
    EndedSeptember 30,
    
    
    September 30,2006
    
    
    2006Non-interest income:Other  office facilities
    
    $
    112
    
    
    $
    316Non-interest expense:Employee compensation
benefits
    
    
    (61
    )
    
    
    (183
    )Other  back-office support
    
    
    (176
    )
    
    
    (713
    )Net effect of affiliate transactions
before income taxes
    
    $
    (125
    )
    
    $
    (580
    )
 20




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
    For the Three Months Ended September 30, 2005BFC
    
    
    Levitt
    
    
    TotalService Fees
    
    $
    61
    
    
    $
    165
    
    
    $
    226Rent
    
    
    24
    
    
    
    38
    
    
    
    62Total
    
    $
    85
    
    
    $
    203
    
    
    $
    288
 For the Nine Months Ended September 30, 2005BFC
    
    
    Levitt
    
    
    TotalService Fees
    
    $
    194
    
    
    $
    445
    
    
    $
    639Rent
    
    
    68
    
    
    
    50
    
    
    
    118Total
    
    $
    262
    
    
    $
    495
    
    
    $
    757
   10. Segment Reporting
   Reportable Segment
    
    Operating Segments AggregatedBankAtlantic
    
    Banking operationsRyan Beck
    
    Investment banking and brokerage operationsParent Company
    
    BankAtlantic Bancorps operations, costs of acquisitions and financing
activities
 21




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
   Adjusting andParent
    
    
    Elimination
    
    
    SegmentBankAtlantic
    
    
    Ryan Beck
    
    
    Company
    
    
    Entries
    
    
    Total2006Interest income
    
    $
    94,558
    
    
    $
    3,856
    
    
    $
    598
    
    
    $
    (40
    )
    
    $
    98,972Interest expense
    
    
    (39,452
    )
    
    
    (1,436
    )
    
    
    (5,716
    )
    
    
    40
    
    
    
    (46,564
    )Provision for loan losses
    
    
    (271
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (271
    )Non-interest income
    
    
    33,709
    
    
    
    45,205
    
    
    
    2,509
    
    
    
    (10
    )
    
    
    81,413Non-interest expense
    
    
    (75,211
    )
    
    
    (55,572
    )
    
    
    (1,610
    )
    
    
    10
    
    
    
    (132,383
    )Segments profit (loss)
before taxes
    
    
    13,333
    
    
    
    (7,947
    )
    
    
    (4,219
    )
    
    
    
    
    
    
    1,167(Provision) benefit for
income taxes
    
    
    (3,682
    )
    
    
    3,105
    
    
    
    1,748
    
    
    
    
    
    
    
    1,171Segment net income (loss)
    
    $
    9,651
    
    
    $
    (4,842
    )
    
    $
    (2,471
    )
    
    $
    
    
    
    $
    2,338Total Assets
    
    $
    6,182,465
    
    
    $
    263,750
    
    
    $
    793,949
    
    
    $
    (670,514
    )
    
    $
    6,569,6502005Interest income
    
    $
    88,746
    
    
    $
    3,756
    
    
    $
    471
    
    
    $
    (44
    )
    
    $
    92,929Interest expense
    
    
    (32,807
    )
    
    
    (819
    )
    
    
    (4,929
    )
    
    
    44
    
    
    
    (38,511
    )Recovery from loan losses
    
    
    3,410
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,410Non-interest income
    
    
    25,718
    
    
    
    50,368
    
    
    
    450
    
    
    
    (32
    )
    
    
    76,504Non-interest expense
    
    
    (56,722
    )
    
    
    (53,146
    )
    
    
    (1,348
    )
    
    
    32
    
    
    
    (111,184
    )Segments profit (loss)
before taxes
    
    
    28,345
    
    
    
    159
    
    
    
    (5,356
    )
    
    
    
    
    
    
    23,148(Provision) benefit for
income taxes
    
    
    (9,054
    )
    
    
    264
    
    
    
    1,902
    
    
    
    
    
    
    
    (6,888
    )Segment net income (loss)
    
    $
    19,291
    
    
    $
    423
    
    
    $
    (3,454
    )
    
    $
    
    
    
    $
    16,260Total Assets
    
    $
    6,166,104
    
    
    $
    190,327
    
    
    $
    794,577
    
    
    $
    (668,295
    )
    
    $
    6,482,713
 22




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  Adjusting andParent
    
    
    Elimination
    
    
    SegmentBankAtlantic
    
    
    Ryan Beck
    
    
    Company
    
    
    Entries
    
    
    Total2006Interest income
    
    $
    269,646
    
    
    $
    12,085
    
    
    $
    1,857
    
    
    $
    (177
    )
    
    $
    283,411Interest expense
    
    
    (104,144
    )
    
    
    (4,571
    )
    
    
    (16,391
    )
    
    
    177
    
    
    
    (124,929
    )Provision for loan losses
    
    
    (414
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (414
    )Non-interest income
    
    
    95,676
    
    
    
    151,148
    
    
    
    8,524
    
    
    
    (9
    )
    
    
    255,339Non-interest expense
    
    
    (214,778
    )
    
    
    (173,656
    )
    
    
    (5,389
    )
    
    
    9
    
    
    
    (393,814
    )Segments profit (loss)
before taxes
    
    
    45,986
    
    
    
    (14,994
    )
    
    
    (11,399
    )
    
    
    
    
    
    
    19,593(Provision) benefit for
Income taxes
    
    
    (13,165
    )
    
    
    6,220
    
    
    
    4,524
    
    
    
    
    
    
    
    (2,421
    )Segment net income (loss)
    
    $
    32,821
    
    
    $
    (8,774
    )
    
    $
    (6,875
    )
    
    $
    
    
    
    $
    17,1722005Interest income
    
    $
    255,965
    
    
    $
    10,192
    
    
    $
    1,762
    
    
    $
    (102
    )
    
    $
    267,817Interest expense
    
    
    (89,650
    )
    
    
    (2,289
    )
    
    
    (14,269
    )
    
    
    102
    
    
    
    (106,106
    )Recovery from loan losses
    
    
    6,506
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,506Non-interest income
    
    
    74,224
    
    
    
    188,969
    
    
    
    1,324
    
    
    
    (140
    )
    
    
    264,377Non-interest expense
    
    
    (165,302
    )
    
    
    (170,139
    )
    
    
    (4,811
    )
    
    
    140
    
    
    
    (340,112
    )Segments profit (loss)
before taxes
    
    
    81,743
    
    
    
    26,733
    
    
    
    (15,994
    )
    
    
    
    
    
    
    92,482(Provision) benefit for
Income taxes
    
    
    (26,820
    )
    
    
    (10,749
    )
    
    
    5,762
    
    
    
    
    
    
    
    (31,807
    )Segment net income (loss)
    
    $
    54,923
    
    
    $
    15,984
    
    
    $
    (10,232
    )
    
    $
    
    
    
    $
    60,675
 23




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 11. Financial Instruments With Off-balance Sheet Risk
  September 30,
    
    December 31,
    
    September 30,2006
    
    2005
    
    2005Commitments to sell fixed rate residential loans
    
    $
    35,445
    
    
    $
    13,634
    
    
    $
    18,681Commitments to sell variable rate residential loans
    
    
    3,755
    
    
    
    4,438
    
    
    
    3,600Commitments to purchase fixed rate residential loans
    
    
    
    
    
    
    
    
    
    
    4,763Commitments to purchase variable rate residential
loans
    
    
    9,592
    
    
    
    6,689
    
    
    
    4,000Commitments to purchase variable rate commercial
loans
    
    
    38,850
    
    
    
    
    
    
    
    Commitments to originate loans held for sale
    
    
    29,784
    
    
    
    16,220
    
    
    
    13,601Commitments to originate loans held to maturity
    
    
    240,472
    
    
    
    311,081
    
    
    
    391,023Commitments to extend credit, including the
undisbursed
portion of loans in process
    
    
    916,136
    
    
    
    1,151,054
    
    
    
    1,212,150Commitments to purchase branch facilities land
    
    
    8,425
    
    
    
    5,334
    
    
    
    3,705Standby letters of credit
    
    
    79,821
    
    
    
    67,868
    
    
    
    73,963Commercial lines of credit
    
    
    87,123
    
    
    
    119,639
    
    
    
    116,739
  12. Earnings Per Share
  For the Three Months Ended
    
    
    For the Nine Months EndedSeptember 30,
    
    
    September 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Basic earnings per share:Net Income
    
    $
    2,338
    
    
    $
    16,260
    
    
    $
    17,172
    
    
    $
    60,675Basic weighted average number of
common shares outstanding
    
    
    61,045,711
    
    
    
    60,555,158
    
    
    
    61,125,242
    
    
    
    60,361,595Basic earnings per share
    
    $
    0.04
    
    
    $
    0.27
    
    
    $
    0.28
    
    
    $
    1.01Diluted earnings per share:Net Income
    
    $
    2,338
    
    
    $
    16,260
    
    
    $
    17,172
    
    
    $
    60,675Subsidiary stock options
    
    
    
    
    
    
    (21
    )
    
    
    
    
    
    
    (806
    )Income available after assumed conversion
    
    $
    2,338
    
    
    $
    16,239
    
    
    $
    17,172
    
    
    $
    59,869Basic weighted average shares outstanding
    
    
    61,045,711
    
    
    
    60,555,158
    
    
    
    61,125,242
    
    
    
    60,361,595Common stock equivalents resulting from
stock-based compensation
    
    
    1,366,654
    
    
    
    2,637,973
    
    
    
    1,538,364
    
    
    
    2,814,291Diluted weighted average shares
outstanding
    
    
    62,412,365
    
    
    
    63,193,131
    
    
    
    62,663,606
    
    
    
    63,175,886Diluted earnings per share
    
    $
    0.04
    
    
    $
    0.26
    
    
    $
    0.27
    
    
    $
    0.95
 24




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  13. Investment in Unconsolidated Subsidiaries
  As ofSeptember 30,
    
    
    December 31,
    
    
    September 30,2006
    
    
    2005
    
    
    2005Statutory business trusts
    
    $
    7,910
    
    
    $
    7,910
    
    
    $
    12,510Rental real estate joint venture
    
    
    5,449
    
    
    
    4,554
    
    
    
    Total investments in
unconsolidated subsidiaries
    
    $
    13,359
    
    
    $
    12,464
    
    
    $
    12,510
  For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Equity in rental real estate joint
venture earnings
    
    $
    105
    
    
    $
    
    
    
    $
    897
    
    
    $
    Equity in statutory trusts earnings
    
    
    161
    
    
    
    142
    
    
    
    467
    
    
    
    410Income from unconsolidated subsidiaries
    
    $
    266
    
    
    $
    142
    
    
    $
    1,364
    
    
    $
    410
      14. Nonmonetary Transactions
  25




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  15. Settlement of Compliance Matter
  16. New Accounting Pronouncements
     26




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
     27




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   Critical Accounting Policies
  28




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Share-based Compensation
    Summary Consolidated Results of Operations by Segment
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeBankAtlantic
    
    $
    9,651
    
    
    $
    19,291
    
    
    $
    (9,640
    )
    
    $
    32,821
    
    
    $
    54,923
    
    
    $
    (22,102
    )Ryan Beck
    
    
    (4,842
    )
    
    
    423
    
    
    
    (5,265
    )
    
    
    (8,774
    )
    
    
    15,984
    
    
    
    (24,758
    )Parent Company
    
    
    (2,471
    )
    
    
    (3,454
    )
    
    
    983
    
    
    
    (6,875
    )
    
    
    (10,232
    )
    
    
    3,357Net income
    
    $
    2,338
    
    
    $
    16,260
    
    
    $
    (13,922
    )
    
    $
    17,172
    
    
    $
    60,675
    
    
    $
    (43,503
    )
 For the Three Months Ended September 30, 2006 Compared to the Same 2005 Period:
    29




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  For the Nine Months Ended September 30, 2006 Compared to the Same 2005 Period:
  Consolidated Provision for Income Taxes
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeIncome before
income taxes
    
    $
    1,167
    
    
    $
    23,148
    
    
    $
    (21,981
    )
    
    $
    19,593
    
    
    $
    92,482
    
    
    $
    (72,889
    )Provision for
income taxes
    
    
    (1,171
    )
    
    
    6,888
    
    
    
    (8,059
    )
    
    
    2,421
    
    
    
    31,807
    
    
    
    (29,386
    )Consolidated net
income
    
    $
    2,338
    
    
    $
    16,260
    
    
    $
    (13,922
    )
    
    $
    17,172
    
    
    $
    60,675
    
    
    $
    (43,503
    )Effective tax rate
    
    
    -100.34
    %
    
    
    29.76
    %
    
    
    N/A
    
    
    
    12.36
    %
    
    
    34.39
    %
    
    
    -22.04
    %
  30




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 BankAtlantic Results of Operations
 Net interest income
 Average Balance Sheet - Yield / Rate AnalysisFor the Three Months EndedSeptember 30, 2006
    
    
    September 30, 2005Average
    
    
    Revenue/
    
    
    Yield/
    
    
    Average
    
    
    Revenue/
    
    
    Yield/( in thousands)
    
    Balance
    
    
    Expense
    
    
    Rate
    
    
    Balance
    
    
    Expense
    
    
    RateLoans:Residential real estate
    
    $
    2,130,077
    
    
    
    27,891
    
    
    
    5.24
    %
    
    $
    2,245,067
    
    
    
    27,676
    
    
    
    4.93
    %Commercial real estate
    
    
    1,498,192
    
    
    
    32,979
    
    
    
    8.81
    
    
    
    1,639,530
    
    
    
    30,839
    
    
    
    7.52Loan participations sold
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    147,633
    
    
    
    2,637
    
    
    
    7.09Consumer
    
    
    563,001
    
    
    
    11,024
    
    
    
    7.83
    
    
    
    527,189
    
    
    
    8,433
    
    
    
    6.40Lease financing
    
    
    76
    
    
    
    3
    
    
    
    15.79
    
    
    
    2,768
    
    
    
    66
    
    
    
    9.54Commercial business
    
    
    152,720
    
    
    
    3,405
    
    
    
    8.92
    
    
    
    90,578
    
    
    
    1,828
    
    
    
    8.07Small business
    
    
    267,263
    
    
    
    5,489
    
    
    
    8.22
    
    
    
    216,931
    
    
    
    4,268
    
    
    
    7.87Total loans
    
    
    4,611,329
    
    
    
    80,791
    
    
    
    7.01
    
    
    
    4,869,696
    
    
    
    75,747
    
    
    
    6.22Investments  tax exempt
    
    
    397,436
    
    
    
    5,806
    (1)
    
    
    5.84
    
    
    
    386,097
    
    
    
    5,617
    (1)
    
    
    5.82Investments  taxable
    
    
    660,785
    
    
    
    9,993
    
    
    
    6.05
    
    
    
    712,092
    
    
    
    9,348
    
    
    
    5.25Total interest earning assets
    
    
    5,669,550
    
    
    
    96,590
    
    
    
    6.81
    %
    
    
    5,967,885
    
    
    
    90,712
    
    
    
    6.08
    %Goodwill and core deposit intangibles
    
    
    77,913
    
    
    
    
    
    
    
    
    
    
    
    79,494Other non-interest earning assets
    
    
    371,752
    
    
    
    
    
    
    
    
    
    
    
    312,261Total Assets
    
    $
    6,119,215
    
    
    
    
    
    
    
    
    
    
    $
    6,359,640Deposits:Savings
    
    $
    367,829
    
    
    
    721
    
    
    
    0.78
    %
    
    $
    303,268
    
    
    
    229
    
    
    
    0.30
    %NOW
    
    
    727,517
    
    
    
    1,149
    
    
    
    0.63
    
    
    
    666,567
    
    
    
    773
    
    
    
    0.46Money market
    
    
    733,058
    
    
    
    4,019
    
    
    
    2.18
    
    
    
    904,382
    
    
    
    3,729
    
    
    
    1.64Certificate of deposit
    
    
    858,688
    
    
    
    9,206
    
    
    
    4.25
    
    
    
    781,044
    
    
    
    5,788
    
    
    
    2.94Total interest bearing deposits
    
    
    2,687,092
    
    
    
    15,095
    
    
    
    2.23
    
    
    
    2,655,261
    
    
    
    10,519
    
    
    
    1.57Short-term borrowed funds
    
    
    378,063
    
    
    
    5,117
    
    
    
    5.37
    
    
    
    256,492
    
    
    
    2,151
    
    
    
    3.33Advances from FHLB
    
    
    1,354,944
    
    
    
    18,509
    
    
    
    5.42
    
    
    
    1,659,411
    
    
    
    17,332
    
    
    
    4.14Secured borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    147,633
    
    
    
    2,637
    
    
    
    7.09Long-term debt
    
    
    37,283
    
    
    
    805
    
    
    
    8.57
    
    
    
    35,447
    
    
    
    645
    
    
    
    7.22Total interest bearing liabilities
    
    
    4,457,382
    
    
    
    39,526
    
    
    
    3.52
    
    
    
    4,754,244
    
    
    
    33,284
    
    
    
    2.78Demand deposits
    
    
    1,043,574
    
    
    
    
    
    
    
    
    
    
    
    1,000,694Non-interest bearing other liabilities
    
    
    53,567
    
    
    
    
    
    
    
    
    
    
    
    56,659Total Liabilities
    
    
    5,554,523
    
    
    
    
    
    
    
    
    
    
    
    5,811,597Stockholders equity
    
    
    564,692
    
    
    
    
    
    
    
    
    
    
    
    548,043Total liabilities and stockholders
equity
    
    $
    6,119,215
    
    
    
    
    
    
    
    
    
    
    $
    6,359,640Net tax equivalent interest income/
net interest spread
    
    
    
    
    
    $
    57,064
    
    
    
    3.29
    %
    
    
    
    
    
    $
    57,428
    
    
    
    3.30
    %Tax equivalent adjustment
    
    
    
    
    
    
    (2,032
    )
    
    
    
    
    
    
    
    
    
    
    (1,966
    )Capitalized interest from
real estate operations
    
    
    
    
    
    
    75
    
    
    
    
    
    
    
    
    
    
    
    477Net interest income
    
    
    
    
    
    
    55,107
    
    
    
    
    
    
    
    
    
    
    
    55,939MarginInterest income/interest earning assets
    
    
    
    
    
    
    
    
    
    
    6.81
    %
    
    
    
    
    
    
    
    
    
    
    6.08
    %Interest expense/interest earning
assets
    
    
    
    
    
    
    
    
    
    
    2.77
    
    
    
    
    
    
    
    
    
    
    
    2.21Net interest margin (tax equivalent)
    
    
    
    
    
    
    
    
    
    
    4.04
    %
    
    
    
    
    
    
    
    
    
    
    3.87
    %Net interest margin (tax equivalent)
excluding secured borrowings
    
    
    
    
    
    
    
    
    
    
    4.04
    %
    
    
    
    
    
    
    
    
    
    
    3.96
    %
 
 (1)
    
    The tax equivalent basis is computed using a 35% tax rate. 31




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 For the Three Months Ended September 30, 2006 Compared to the Same 2005 Period:
     32




---



##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Bank Operations Business SegmentAverage Balance Sheet - Yield / Rate AnalysisFor the Nine Months EndedSeptember 30, 2006
    
    
    September 30, 2005Average
    
    
    Revenue/
    
    
    Yield/
    
    
    Average
    
    
    Revenue/
    
    
    Yield/( in thousands)
    
    Balance
    
    
    Expense
    
    
    Rate
    
    
    Balance
    
    
    Expense
    
    
    RateLoans:Residential real estate
    
    $
    2,073,923
    
    
    
    79,890
    
    
    
    5.14
    %
    
    $
    2,198,170
    
    
    
    80,782
    
    
    
    4.90
    %Commercial real estate
    
    
    1,511,983
    
    
    
    94,775
    
    
    
    8.36
    
    
    
    1,708,272
    
    
    
    89,460
    
    
    
    6.98Loan participations sold
    
    
    41,306
    
    
    
    2,401
    
    
    
    7.75
    
    
    
    158,587
    
    
    
    7,281
    
    
    
    6.12Consumer
    
    
    549,939
    
    
    
    30,676
    
    
    
    7.44
    
    
    
    506,902
    
    
    
    22,376
    
    
    
    5.89Lease financing
    
    
    237
    
    
    
    23
    
    
    
    12.94
    
    
    
    4,561
    
    
    
    365
    
    
    
    10.67Commercial business
    
    
    135,035
    
    
    
    8,914
    
    
    
    8.80
    
    
    
    90,199
    
    
    
    5,047
    
    
    
    7.46Small business
    
    
    254,325
    
    
    
    15,262
    
    
    
    8.00
    
    
    
    206,389
    
    
    
    11,978
    
    
    
    7.74Total loans
    
    
    4,566,748
    
    
    
    231,941
    
    
    
    6.77
    
    
    
    4,873,080
    
    
    
    217,289
    
    
    
    5.95Investments  tax exempt
    
    
    396,348
    
    
    
    17,355
    (1)
    
    
    5.84
    
    
    
    362,988
    
    
    
    15,775
    (1)
    
    
    5.79Investments  taxable
    
    
    610,894
    
    
    
    26,422
    
    
    
    5.77
    
    
    
    722,477
    
    
    
    28,423
    
    
    
    5.25Total interest earning assets
    
    
    5,573,990
    
    
    
    275,718
    
    
    
    6.60
    %
    
    
    5,958,545
    
    
    
    261,487
    
    
    
    5.85
    %Goodwill and core deposit intangibles
    
    
    78,300
    
    
    
    
    
    
    
    
    
    
    
    79,923Other non-interest earning assets
    
    
    364,851
    
    
    
    
    
    
    
    
    
    
    
    297,873Total Assets
    
    $
    6,017,141
    
    
    
    
    
    
    
    
    
    
    $
    6,336,341Deposits:Savings
    
    $
    354,765
    
    
    
    1,557
    
    
    
    0.59
    %
    
    $
    295,450
    
    
    
    628
    
    
    
    0.28
    %NOW
    
    
    750,771
    
    
    
    3,106
    
    
    
    0.55
    
    
    
    672,224
    
    
    
    2,097
    
    
    
    0.42Money market
    
    
    775,833
    
    
    
    11,977
    
    
    
    2.06
    
    
    
    910,697
    
    
    
    9,727
    
    
    
    1.43Certificate of deposit
    
    
    849,011
    
    
    
    25,061
    
    
    
    3.95
    
    
    
    780,258
    
    
    
    15,896
    
    
    
    2.72Total interest bearing deposits
    
    
    2,730,380
    
    
    
    41,701
    
    
    
    2.04
    
    
    
    2,658,629
    
    
    
    28,348
    
    
    
    1.43Short-term borrowed funds
    
    
    342,413
    
    
    
    12,760
    
    
    
    4.98
    
    
    
    325,670
    
    
    
    6,955
    
    
    
    2.86Advances from FHLB
    
    
    1,177,389
    
    
    
    45,655
    
    
    
    5.18
    
    
    
    1,604,169
    
    
    
    46,610
    
    
    
    3.88Secured borrowings
    
    
    41,306
    
    
    
    2,401
    
    
    
    7.75
    
    
    
    158,587
    
    
    
    7,281
    
    
    
    6.12Long-term debt
    
    
    37,253
    
    
    
    2,469
    
    
    
    8.86
    
    
    
    36,148
    
    
    
    1,823
    
    
    
    6.74Total interest bearing liabilities
    
    
    4,328,741
    
    
    
    104,986
    
    
    
    3.24
    
    
    
    4,783,203
    
    
    
    91,017
    
    
    
    2.54Demand deposits
    
    
    1,072,867
    
    
    
    
    
    
    
    
    
    
    
    965,900Non-interest bearing other liabilities
    
    
    58,383
    
    
    
    
    
    
    
    
    
    
    
    49,823Total Liabilities
    
    
    5,459,991
    
    
    
    
    
    
    
    
    
    
    
    5,798,926Stockholders equity
    
    
    557,150
    
    
    
    
    
    
    
    
    
    
    
    537,415Total liabilities and stockholders
equity
    
    $
    6,017,141
    
    
    
    
    
    
    
    
    
    
    $
    6,336,341Net tax equivalent interest income/
net interest spread
    
    
    
    
    
    $
    170,732
    
    
    
    3.36
    %
    
    
    
    
    
    $
    170,470
    
    
    
    3.31
    %Tax equivalent adjustment
    
    
    
    
    
    
    (6,074
    )
    
    
    
    
    
    
    
    
    
    
    (5,521
    )Capitalized interest from
real estate operations
    
    
    
    
    
    
    844
    
    
    
    
    
    
    
    
    
    
    
    1,366Net interest income
    
    
    
    
    
    
    165,502
    
    
    
    
    
    
    
    
    
    
    
    166,315MarginInterest income/interest earning assets
    
    
    
    
    
    
    
    
    
    
    6.60
    %
    
    
    
    
    
    
    
    
    
    
    5.85
    %Interest expense/interest earning
assets
    
    
    
    
    
    
    
    
    
    
    2.52
    
    
    
    
    
    
    
    
    
    
    
    2.04Net interest margin (tax equivalent)
    
    
    
    
    
    
    
    
    
    
    4.08
    %
    
    
    
    
    
    
    
    
    
    
    3.81
    %Net interest margin (tax equivalent)
excluding secured borrowings
    
    
    
    
    
    
    
    
    
    
    4.11
    %
    
    
    
    
    
    
    
    
    
    
    3.91
    %
 
 (1)
    
    The tax equivalent basis is computed using a 35% tax rate. 33




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 For the Nine Months Ended September 30, 2006 Compared to the Same 2005 Period:
  Provision for Loan Losses
 For the Three Months Ended
    
    
    For the Nine Months EndedSeptember 30,
    
    
    September 30,(in thousands)
    
    2006
    
    
    2005
    
    
    2006
    
    
    2005Balance, beginning of period
    
    $
    42,012
    
    
    $
    43,650
    
    
    $
    41,192
    
    
    $
    46,010Charge-offs:Consumer loans
    
    
    (210
    )
    
    
    (99
    )
    
    
    (367
    )
    
    
    (209
    )Residential real estate loans
    
    
    (111
    )
    
    
    (191
    )
    
    
    (239
    )
    
    
    (445
    )Small business
    
    
    (93
    )
    
    
    (68
    )
    
    
    (408
    )
    
    
    (663
    )Continuing loan products
    
    
    (414
    )
    
    
    (358
    )
    
    
    (1,014
    )
    
    
    (1,317
    )Discontinued loan products
    
    
    (22
    )
    
    
    (222
    )
    
    
    (138
    )
    
    
    (1,057
    )Total charge-offs
    
    
    (436
    )
    
    
    (580
    )
    
    
    (1,152
    )
    
    
    (2,374
    )Recoveries:Commercial business loans
    
    
    80
    
    
    
    120
    
    
    
    360
    
    
    
    1,351Commercial real estate loans
    
    
    10
    
    
    
    5
    
    
    
    19
    
    
    
    11Small business
    
    
    193
    
    
    
    290
    
    
    
    452
    
    
    
    694Consumer loans
    
    
    79
    
    
    
    89
    
    
    
    194
    
    
    
    172Residential real estate loans
    
    
    170
    
    
    
    55
    
    
    
    348
    
    
    
    56Continuing loan products
    
    
    532
    
    
    
    559
    
    
    
    1,373
    
    
    
    2,284Discontinued loan products
    
    
    138
    
    
    
    476
    
    
    
    690
    
    
    
    1,281Total recoveries
    
    
    670
    
    
    
    1,035
    
    
    
    2,063
    
    
    
    3,565Net recoveries
    
    
    234
    
    
    
    455
    
    
    
    911
    
    
    
    1,191Provision for (recovery from) loan losses
    
    
    271
    
    
    
    (3,410
    )
    
    
    414
    
    
    
    (6,506
    )Balance, end of period
    
    $
    42,517
    
    
    $
    40,695
    
    
    $
    42,517
    
    
    $
    40,695
    34




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  September 30,
    
    
    December 31,
    
    
    September 30,2006
    
    
    2005
    
    
    2005NONPERFORMING ASSETSNonaccrual:Tax certificates
    
    $
    760
    
    
    $
    388
    
    
    $
    385Loans
    
    
    32,895
    
    
    
    6,801
    
    
    
    6,883Total nonaccrual
    
    
    33,655
    
    
    
    7,189
    
    
    
    7,268Repossessed assets:Real estate owned
    
    
    1,439
    
    
    
    967
    
    
    
    912Other
    
    
    
    
    
    
    
    
    
    
    46Total nonperforming assets, net
    
    $
    35,094
    
    
    $
    8,156
    
    
    $
    8,226AllowancesAllowance for loan losses
    
    $
    42,517
    
    
    $
    41,192
    
    
    $
    40,695Allowance for tax certificate losses
    
    
    3,650
    
    
    
    3,271
    
    
    
    3,661Total allowances
    
    $
    46,167
    
    
    $
    44,463
    
    
    $
    44,356POTENTIAL PROBLEM LOANSContractually past due 90 days or
more
    
    $
    
    
    
    $
    
    
    
    $
    Performing impaired loans
    
    
    172
    
    
    
    193
    
    
    
    203Restructured loans
    
    
    
    
    
    
    77
    
    
    
    81Total potential problem loans
    
    $
    172
    
    
    $
    270
    
    
    $
    284
   35




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 BankAtlantics Non-Interest Income
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeOther service charges and fees
    
    $
    6,779
    
    
    $
    5,824
    
    
    $
    955
    
    
    $
    20,354
    
    
    $
    16,911
    
    
    $
    3,443Service charges on deposits
    
    
    24,008
    
    
    
    16,415
    
    
    
    7,593
    
    
    
    64,381
    
    
    
    44,148
    
    
    
    20,233Income (loss) from real
estate operations
    
    
    
    
    
    
    1,142
    
    
    
    (1,142
    )
    
    
    (982
    )
    
    
    5,038
    
    
    
    (6,020
    )Securities activities, net
    
    
    
    
    
    
    23
    
    
    
    (23
    )
    
    
    457
    
    
    
    117
    
    
    
    340Gain associated with
debt redemption
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,528
    
    
    
    
    
    
    
    1,528Losses (gains) on sales of
office
properties and equipment, net
    
    
    (3
    )
    
    
    
    
    
    
    (3
    )
    
    
    1,775
    
    
    
    1,215
    
    
    
    560Other
    
    
    2,925
    
    
    
    2,314
    
    
    
    611
    
    
    
    8,163
    
    
    
    6,795
    
    
    
    1,368Non-interest income
    
    $
    33,709
    
    
    $
    25,718
    
    
    $
    7,991
    
    
    $
    95,676
    
    
    $
    74,224
    
    
    $
    21,452
      36




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
   BankAtlantics Non-Interest Expense
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeEmployee compensation
and benefits
    
    $
    37,524
    
    
    $
    28,106
    
    
    $
    9,418
    
    
    $
    108,398
    
    
    $
    82,081
    
    
    $
    26,317Occupancy and equipment
    
    
    14,809
    
    
    
    10,826
    
    
    
    3,983
    
    
    
    40,765
    
    
    
    30,108
    
    
    
    10,657Advertising and promotion
    
    
    8,855
    
    
    
    5,518
    
    
    
    3,337
    
    
    
    24,274
    
    
    
    16,651
    
    
    
    7,623Amortization of
intangible assets
    
    
    385
    
    
    
    401
    
    
    
    (16
    )
    
    
    1,174
    
    
    
    1,227
    
    
    
    (53
    )Cost associated with
debt redemption
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,457
    
    
    
    
    
    
    
    1,457Professional fees
    
    
    1,928
    
    
    
    2,642
    
    
    
    (714
    )
    
    
    6,141
    
    
    
    7,175
    
    
    
    (1,034
    )Impairment of office
properties and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,706
    
    
    
    (3,706
    )Check losses
    
    
    2,855
    
    
    
    1,434
    
    
    
    1,421
    
    
    
    5,976
    
    
    
    2,549
    
    
    
    3,427Other
    
    
    8,855
    
    
    
    7,795
    
    
    
    1,060
    
    
    
    26,593
    
    
    
    21,805
    
    
    
    4,788Non-interest expense
    
    $
    75,211
    
    
    $
    56,722
    
    
    $
    18,489
    
    
    $
    214,778
    
    
    $
    165,302
    
    
    $
    49,476
  .
  37




---



##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
        Provision for Income Taxes
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeIncome before
income taxes
    
    $
    13,333
    
    
    $
    28,345
    
    
    $
    (15,012
    )
    
    $
    45,986
    
    
    $
    81,743
    
    
    $
    (35,757
    )Provision for
income taxes
    
    
    3,682
    
    
    
    9,054
    
    
    
    (5,372
    )
    
    
    13,165
    
    
    
    26,820
    
    
    
    (13,655
    )BankAtlantic net
income
    
    $
    9,651
    
    
    $
    19,291
    
    
    $
    (9,640
    )
    
    $
    32,821
    
    
    $
    54,923
    
    
    $
    (22,102
    )Effective tax rate
    
    
    27.62
    %
    
    
    31.94
    %
    
    
    -4.32
    %
    
    
    28.63
    %
    
    
    32.81
    %
    
    
    -4.18
    %
  38




---



##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  Ryan Beck Holdings, Inc. Results of Operations
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeNet interest income:Broker dealer interest
and dividends
    
    $
    3,856
    
    
    $
    3,756
    
    
    $
    100
    
    
    $
    12,085
    
    
    $
    10,192
    
    
    $
    1,893Interest expense
    
    
    (1,436
    )
    
    
    (819
    )
    
    
    (617
    )
    
    
    (4,571
    )
    
    
    (2,289
    )
    
    
    (2,282
    )Net interest income
    
    
    2,420
    
    
    
    2,937
    
    
    
    (517
    )
    
    
    7,514
    
    
    
    7,903
    
    
    
    (389
    )Non-interest income:Principal transactions
    
    
    19,976
    
    
    
    22,894
    
    
    
    (2,918
    )
    
    
    68,064
    
    
    
    79,386
    
    
    
    (11,322
    )Investment banking
    
    
    2,921
    
    
    
    3,741
    
    
    
    (820
    )
    
    
    9,940
    
    
    
    41,017
    
    
    
    (31,077
    )Commissions
    
    
    19,194
    
    
    
    21,390
    
    
    
    (2,196
    )
    
    
    63,990
    
    
    
    61,183
    
    
    
    2,807Other
    
    
    3,114
    
    
    
    2,343
    
    
    
    771
    
    
    
    9,154
    
    
    
    7,383
    
    
    
    1,771Non-interest income
    
    
    45,205
    
    
    
    50,368
    
    
    
    (5,163
    )
    
    
    151,148
    
    
    
    188,969
    
    
    
    (37,821
    )Non-interest expense:Employee compensation
and benefits
    
    
    40,943
    
    
    
    39,358
    
    
    
    1,585
    
    
    
    127,731
    
    
    
    127,561
    
    
    
    170Occupancy and equipment
    
    
    4,369
    
    
    
    4,025
    
    
    
    344
    
    
    
    12,167
    
    
    
    11,929
    
    
    
    238Advertising and promotion
    
    
    1,479
    
    
    
    1,072
    
    
    
    407
    
    
    
    4,372
    
    
    
    4,085
    
    
    
    287Professional fees
    
    
    2,888
    
    
    
    1,411
    
    
    
    1,477
    
    
    
    6,744
    
    
    
    4,419
    
    
    
    2,325Communications
    
    
    3,472
    
    
    
    3,371
    
    
    
    101
    
    
    
    11,356
    
    
    
    10,084
    
    
    
    1,272Floor broker and
and clearing fees
    
    
    1,823
    
    
    
    2,305
    
    
    
    (482
    )
    
    
    6,684
    
    
    
    6,685
    
    
    
    (1
    )Other
    
    
    1,602
    
    
    
    1,604
    
    
    
    (2
    )
    
    
    5,229
    
    
    
    5,376
    
    
    
    (147
    )Minority interest -
hedge fund
    
    
    (1,004
    )
    
    
    
    
    
    
    (1,004
    )
    
    
    (627
    )
    
    
    
    
    
    
    (627
    )Non-interest expense
    
    
    55,572
    
    
    
    53,146
    
    
    
    2,426
    
    
    
    173,656
    
    
    
    170,139
    
    
    
    3,517Income (loss) before
income taxes
    
    
    (7,947
    )
    
    
    159
    
    
    
    (8,106
    )
    
    
    (14,994
    )
    
    
    26,733
    
    
    
    (41,727
    )Income taxes
    
    
    (3,105
    )
    
    
    (264
    )
    
    
    (2,841
    )
    
    
    (6,220
    )
    
    
    10,749
    
    
    
    (16,969
    )Net (loss) income
    
    $
    (4,842
    )
    
    $
    423
    
    
    $
    (5,265
    )
    
    $
    (8,774
    )
    
    $
    15,984
    
    
    $
    (24,758
    )
 For the Three and Nine Months Ended September 30, 2006 Compared to the Same 2005 Period:
   39




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BankAtlantic Bancorp, Inc. and Subsidiaries
  .
        40




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Parent Company Results of Operations
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeNet interest income:Interest and dividend
income
    
    $
    598
    
    
    $
    471
    
    
    $
    127
    
    
    $
    1,857
    
    
    $
    1,762
    
    
    $
    95Interest expense
    
    
    (5,716
    )
    
    
    (4,929
    )
    
    
    (787
    )
    
    
    (16,391
    )
    
    
    (14,269
    )
    
    
    (2,122
    )Net interest expense
    
    
    (5,118
    )
    
    
    (4,458
    )
    
    
    (660
    )
    
    
    (14,534
    )
    
    
    (12,507
    )
    
    
    (2,027
    )Non-interest income:Income from unconsolidated
subsidiaries
    
    
    266
    
    
    
    142
    
    
    
    124
    
    
    
    1,364
    
    
    
    410
    
    
    
    954Securities activities, net
    
    
    2,243
    
    
    
    158
    
    
    
    2,085
    
    
    
    7,156
    
    
    
    256
    
    
    
    6,900Other
    
    
    
    
    
    
    150
    
    
    
    (150
    )
    
    
    4
    
    
    
    658
    
    
    
    (654
    )Non-interest income
    
    
    2,509
    
    
    
    450
    
    
    
    2,059
    
    
    
    8,524
    
    
    
    1,324
    
    
    
    7,200Non-interest expense:Employee compensation
and benefits
    
    
    1,107
    
    
    
    991
    
    
    
    116
    
    
    
    3,655
    
    
    
    2,999
    
    
    
    656Professional fees
    
    
    212
    
    
    
    186
    
    
    
    26
    
    
    
    582
    
    
    
    1,151
    
    
    
    (569
    )Other
    
    
    291
    
    
    
    171
    
    
    
    120
    
    
    
    1,152
    
    
    
    661
    
    
    
    491Non-interest expense
    
    
    1,610
    
    
    
    1,348
    
    
    
    262
    
    
    
    5,389
    
    
    
    4,811
    
    
    
    578Loss before income taxes
    
    
    (4,219
    )
    
    
    (5,356
    )
    
    
    1,137
    
    
    
    (11,399
    )
    
    
    (15,994
    )
    
    
    4,595Income taxes
    
    
    (1,748
    )
    
    
    (1,902
    )
    
    
    154
    
    
    
    (4,524
    )
    
    
    (5,762
    )
    
    
    1,238Net loss
    
    $
    (2,471
    )
    
    $
    (3,454
    )
    
    $
    983
    
    
    $
    (6,875
    )
    
    $
    (10,232
    )
    
    $
    3,357
       41




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BankAtlantic Bancorp, Inc. and Subsidiaries
      42




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 BankAtlantic Bancorp Consolidated Financial Condition
  
    
    Decline in cash and due from deposit institutions from lower cash letter balances
associated with an increased frequency of inter-day clearings from check image
processing;
    
    Increase in securities owned associated with Ryan Becks trading activities;
    
    Decline in securities available for sale reflecting an investment strategy to limit
asset growth in response to the relatively flat yield curve during the period;
    
    Higher investment securities balances due to purchases of tax certificates at annual auctions;
    
    Increased investment in FHLB stock related to additional FHLB advance borrowings;
    
    Slight increase in loans receivable balances associated with recent residential loan
purchases and growth in home equity, small business and corporate loan portfolios
partially offset by lower commercial real estate loan balances;
    
    Lower commercial real estate loan balances primarily resulting from a decision to
cease condominium lending, and $112 million of participations sold being treated as loan
sales during 2006 instead of secured borrowings at December 31, 2005 as a result of
amendments of the applicable participation agreements;
    
    Increase in residential loans held for sale associated with a program to originate
loans with a commitment to sell the loans to a correspondent;
    
    Increase in accrued interest receivable resulting from higher rates on earning assets
during the period;
    
    Increase in real estate held for development resulting from an increase in real
estate inventory at a real estate joint venture;
    
    Increase in investment in unconsolidated subsidiaries associated with $5.5 million of
investments in two rental real estate joint ventures partially offset by a distribution
from another investment in a rental real estate joint venture originated during 2005;
    
    Increase in due from clearing agent associated with Ryan Beck trading activities; and
    
    Increase in office properties and equipment associated with BankAtlantics branch
expansion initiatives.
  
    
    Lower deposit account balances resulting from a significant decline in money market
account balances associated with higher short term interest rates partially offset by
growth in low-cost deposits and certificates of deposit;
    
    Increase in FHLB advances to fund asset growth, deposit run-off and repayments of
short-term borrowings;
    
    Decrease in secured borrowings (associated with loan participations sold without
recourse that are accounted for as secured borrowings) due to loan repayments and a
management decision to amend participation agreements to qualify as loan sales instead
of secured borrowing arrangements;
    
    Decline in notes payable resulting from the repayment of construction loans to an
unrelated financial institution at a real estate joint venture that is consolidated in
the Companys financial statements;
    
    Increase in due to clearing agent and securities sold but not yet purchased
associated with Ryan Becks trading activities; and
    
    Declines in other liabilities associated with a reduction in Ryan Becks accrued
employee compensation and benefits reflecting the payout of 2005 annual bonuses during
the first quarter
of 2006 as well as the reduction in a $10 million reserve for the anti-money laundering
and bank secrecy act regulatory compliance matters based on payment of that amount.
  43




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Liquidity and Capital Resources
 BankAtlantic Bancorp, Inc. Liquidity and Capital Resources
       BankAtlantic Liquidity and Capital Resources
  44




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
       Minimum RatiosAdequately
    
    WellActual
    
    Capitalized
    
    CapitalizedAmount
    
    Ratio
    
    Ratio
    
    RatioAt September 30, 2006:Total risk-based capital
    
    $
    526,738
    
    
    
    12.02
    %
    
    
    8.00
    %
    
    
    10.00
    %Tier 1 risk-based capital
    
    $
    458,741
    
    
    
    10.47
    %
    
    
    4.00
    %
    
    
    6.00
    %Tangible capital
    
    $
    458,741
    
    
    
    7.54
    %
    
    
    1.50
    %
    
    
    1.50
    %Core capital
    
    $
    458,741
    
    
    
    7.54
    %
    
    
    4.00
    %
    
    
    5.00
    %At December 31, 2005:Total risk-based capital
    
    $
    512,664
    
    
    
    11.50
    %
    
    
    8.00
    %
    
    
    10.00
    %Tier 1 risk-based capital
    
    $
    446,419
    
    
    
    10.02
    %
    
    
    4.00
    %
    
    
    6.00
    %Tangible capital
    
    $
    446,419
    
    
    
    7.42
    %
    
    
    1.50
    %
    
    
    1.50
    %Core capital
    
    $
    446,419
    
    
    
    7.42
    %
    
    
    4.00
    %
    
    
    5.00
    %
  45




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Ryan Beck & Co., Inc. Liquidity and Capital Resources
      Consolidated Off Balance Sheet Arrangements  Contractual Obligations
 (in thousands)
    
    Payments Due by Period (1)(2)Less than
    
    
    
    
    
    
    
    
    
    
    After 5Contractual Obligations
    
    Total
    
    
    1 year
    
    
    1-3 years
    
    
    4-5 years
    
    
    yearsTime deposits
    
    $
    874,956
    
    
    $
    778,922
    
    
    $
    83,803
    
    
    $
    12,165
    
    
    $
    66Long-term debt
    
    
    293,458
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    293,458Advances from FHLB
    
    
    1,687,062
    
    
    
    1,640,062
    
    
    
    15,000
    
    
    
    32,000
    
    
    
    Operating lease obligations
    
    
    128,488
    
    
    
    19,413
    
    
    
    33,974
    
    
    
    21,197
    
    
    
    53,904Pension obligation
    
    
    12,114
    
    
    
    913
    
    
    
    2,157
    
    
    
    2,760
    
    
    
    6,284Other obligations
    
    
    43,025
    
    
    
    20,525
    
    
    
    5,400
    
    
    
    5,900
    
    
    
    11,200Securities sold but not
yet purchased
    
    
    68,820
    
    
    
    68,820
    
    
    
    
    
    
    
    
    
    
    
    Total contractual cash
obligations
    
    $
    3,107,923
    
    
    $
    2,528,655
    
    
    $
    140,334
    
    
    $
    74,022
    
    
    $
    364,912
 
 (1)
    
    Payments due by period are based on contractual maturities(2)
    
    The above table excludes interest payments on interest bearing liabilities 46




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 Item 3. Quantitative and Qualitative Disclosures about Market Risk
 Market Risk
  BankAtlantic Interest Rate Risk
  BankAtlantic Repricing Gap TableAs of September 30, 20061 Year
    
    
    3 Years
    
    
    5 Years
    
    
    More Thanor Less
    
    
    or Less
    
    
    or Less
    
    
    5 Years
    
    
    TotalInterest earning assets:Loans:Residential loans (1)Fixed rate
    
    $
    123,413
    
    
    
    161,980
    
    
    
    126,583
    
    
    
    262,685
    
    
    
    674,661Hybrids ARM less than 5 years
    
    
    166,324
    
    
    
    113,970
    
    
    
    43,083
    
    
    
    
    
    
    
    323,377Hybrids ARM more than 5 years
    
    
    260,290
    
    
    
    306,946
    
    
    
    285,703
    
    
    
    328,327
    
    
    
    1,181,266Commercial loans
    
    
    1,450,791
    
    
    
    102,701
    
    
    
    78,391
    
    
    
    22,865
    
    
    
    1,654,748Small business loans
    
    
    173,059
    
    
    
    73,267
    
    
    
    16,487
    
    
    
    9,927
    
    
    
    272,740Consumer
    
    
    537,779
    
    
    
    5,419
    
    
    
    12,683
    
    
    
    18,059
    
    
    
    573,940Total loans
    
    
    2,711,656
    
    
    
    764,283
    
    
    
    562,930
    
    
    
    641,863
    
    
    
    4,680,732Investment securitiesTax exempt securities
    
    
    661
    
    
    
    6,279
    
    
    
    29,433
    
    
    
    360,711
    
    
    
    397,084Taxable investment securities
    
    
    248,289
    
    
    
    84,230
    
    
    
    66,026
    
    
    
    66,860
    
    
    
    465,405Tax certificates
    
    
    191,760
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    191,760Total investment securities
    
    
    440,710
    
    
    
    90,509
    
    
    
    95,459
    
    
    
    427,571
    
    
    
    1,054,249Total interest earning assets
    
    
    3,152,366
    
    
    
    854,792
    
    
    
    658,389
    
    
    
    1,069,434
    
    
    
    5,734,981Total non-earning assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    447,484
    
    
    
    447,484Total assets
    
    $
    3,152,366
    
    
    
    854,792
    
    
    
    658,389
    
    
    
    1,516,918
    
    
    
    6,182,465Total interest bearing liabilities
    
    $
    3,408,303
    
    
    
    367,769
    
    
    
    268,407
    
    
    
    1,502,100
    
    
    
    5,546,579Non-interest bearing liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    635,886
    
    
    
    635,886Total non-interest bearing
liabilities
and equity
    
    $
    3,408,303
    
    
    
    367,769
    
    
    
    268,407
    
    
    
    2,137,986
    
    
    
    6,182,465GAP (repricing difference)
    
    $
    (255,937
    )
    
    
    487,023
    
    
    
    389,982
    
    
    
    (432,666
    )Cumulative GAP
    
    $
    (255,937
    )
    
    
    231,086
    
    
    
    621,068
    
    
    
    188,402Repricing Percentage
    
    
    -4.14
    %
    
    
    7.88
    %
    
    
    6.31
    %
    
    
    -7.00
    %Cumulative Percentage
    
    
    -4.14
    %
    
    
    3.74
    %
    
    
    10.05
    %
    
    
    3.05
    %
 
 (1)
    
    Hybrid adjustable rate mortgages (ARM) earn fixed rates for designated periods and
adjust annually thereafter based on the one year U.S. Treasury note rate.   47




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 The model calculates the change in net interest income by:i.
    
    Calculating interest income and interest expense from existing assets and
liabilities using current repricing, prepayment and volume assumptions,ii.
    
    Estimating the change in expected net interest income based on instantaneous and
parallel shifts in the yield curve to determine the effect on net interest income; andiii.
    
    Calculating the percentage change in net interest income calculated in (i) and (ii).
   
    
    Interest rates,
    
    Loan prepayment rates,
    
    Deposit decay rates,
    
    Re-pricing of certain borrowings, and
    
    Reinvestment in earning assets.
  As of September 30, 2006NetChanges
    
    Interest
    
    Percentin Rate
    
    Income
    
    Change+200 bp
    
    $
    242,942
    
    
    
    -4.93
    %+100 bp
    
    $
    252,012
    
    
    
    -1.38
    %0
    
    $
    255,537
    
    
    
    0.00
    %-100 bp
    
    $
    257,200
    
    
    
    0.65
    %-200 bp
    
    $
    253,410
    
    
    
    -0.83
    %
  48




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Equity Price Risk
  AvailablePercent
    
    for SaleChange in
    
    Securities
    
    DollarFair Value
    
    Fair Value
    
    Change20%
    
    $
    113,544
    
    
    $
    18,92410%
    
    $
    104,082
    
    
    $
    9,4620%
    
    $
    94,620
    
    
    $
    -10%
    
    $
    85,158
    
    
    $
    (9,462
    )-20%
    
    $
    75,696
    
    
    $
    (18,924
    )
  Ryan Beck Market Risk
     High
    
    Low
    
    AverageVaR
    
    $
    416
    
    
    
    88
    
    
    
    205Aggregate Long Value
    
    $
    206,399
    
    
    
    83,886
    
    
    
    141,048Aggregate Short Value
    
    $
    145,920
    
    
    
    32,406
    
    
    
    72,583
 49




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 Item 4. Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
  Changes in Internal Control over Financial Reporting
  50




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 PART II  OTHER INFORMATION
 
 Item 1A. Risk Factors.
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  Total Number of
    
    
    Maximum Number ofShares Purchased as
    
    
    Shares thatPart of Publicly
    
    
    May Yet Be PurchasedTotal Number of
    
    
    Average Price
    
    
    Announced Plans
    
    
    Under the Plans orPeriod
    
    Shares Purchased
    
    
    Per Share
    
    
    or Programs (2)
    
    
    ProgramsJuly 1, 2006 through
July 31, 2006
    
    
    185,500
    
    
    $
    13.45
    
    
    
    185,500
    
    
    
    5,564,500August 1, 2006 through
August 31, 2006
    
    
    124,200
    
    
    
    13.70
    
    
    
    124,200
    
    
    
    5,440,300September 1, 2006
through
September 30, 2006 (1)
    
    
    15,880
    
    
    
    14.07
    
    
    
    
    
    
    
    Total
    
    
    325,580
    
    
    $
    13.58
    
    
    
    309,700
    
    
    
    5,440,300
 
 1.
    
    During September 2006, 15,880 shares of the Companys Class A common stock were
redeemed by the Company as consideration for the payment of the exercise price and
minimum withholding taxes of stock options exercised during the period.2.
    
    On May 3, 2006, the Company announced that its Board of Directors had approved the
repurchase of up to 6 million shares of Class A common stock through a share repurchase
program. The shares may be purchased on the open market or through private transactions.
The timing and the amount of repurchases, if any, will depend on market conditions,
share price, trading volume and other factors. 51




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 Item 6. Exhibits
 Exhibit 31.1
    
    Certification of the Chief Executive Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002Exhibit 31.2
    
    Certification of the Chief Financial Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002Exhibit 32.1
    
    Certification of the Chief Executive Officer pursuant to
18 U.S.C. Section 1350, as Adopted Pursuant to Section
906 of the Sarbanes-Oxley Act of 2002Exhibit 32.2
    
    CFO Certification of the Chief Financial Officer pursuant
to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
906 of the Sarbanes-Oxley Act of 2002
 52




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 Signatures
  BANKATLANTIC BANCORP, INC.
 Date November 8, 2006
    By:
    /s/ Alan B. LevanAlan B. LevanChief Executive Officer/Chairman/PresidentDate November 8, 2006
    By:
    /s/ James A. WhiteJames A. WhiteExecutive Vice President, Chief Financial Officer 53