##### 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 June 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
  Large accelerated filer þ
    
    Accelerated filer o
    
    Non-accelerated filer o
 o þ
  Outstanding atTitle of Each Class
    
    August 2, 2006Class A Common Stock, par value $0.01 per share
    
    
    56,473,034Class B Common Stock, par value $0.01 per share
    
    
    4,876,124




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##### 



TABLE OF CONTENTS
 Part I. FINANCIAL INFORMATION
 PageReferenceItem 1.
    
    Financial Statements
    
    
    1-27Consolidated Statements of Financial Condition - June 30, 2006 and 2005 and December 31, 2005  - Unaudited
    
    
    4Consolidated Statements of Operations - For the Three and Six Months Ended June 30, 2006 and 2005 - Unaudited
    
    
    5-6Consolidated
Statements of Stockholders Equity and Comprehensive Income - For the Six Months Ended June 30, 2006  and 2005 - Unaudited
    
    
    7Consolidated Statements of Cash Flows - For the Six Months Ended June 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 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    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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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION  UNAUDITED
 June 30,
    
    
    December 31,
    
    
    June 30,(In thousands, except share data)
    
    2006
    
    
    2005
    
    
    2005ASSETSCash and due from depository institutions
    
    $
    163,394
    
    
    $
    167,032
    
    
    $
    159,173Federal funds sold and other short-term investments
    
    
    1,263
    
    
    
    3,229
    
    
    
    5,783Securities owned (at fair value)
    
    
    174,657
    
    
    
    180,292
    
    
    
    109,095Securities available for sale (at fair value)
    
    
    662,304
    
    
    
    674,544
    
    
    
    749,188Investment securities and tax certificates (approximate fair value:$411,117, $364,122 and $403,951)
    
    
    415,127
    
    
    
    364,444
    
    
    
    402,430Federal Home Loan Bank stock, at cost which approximates
fair value
    
    
    62,667
    
    
    
    69,931
    
    
    
    88,362Loans receivable, net of allowance for loan losses of
$42,012, $41,192 and $43,650
    
    
    4,478,427
    
    
    
    4,622,234
    
    
    
    4,961,119Residential loans held for sale
    
    
    6,337
    
    
    
    2,538
    
    
    
    7,785Accrued interest receivable
    
    
    42,655
    
    
    
    41,490
    
    
    
    41,270Real estate held for development and sale
    
    
    23,585
    
    
    
    21,177
    
    
    
    23,982Investments in unconsolidated subsidiaries
    
    
    11,996
    
    
    
    12,464
    
    
    
    7,910Office properties and equipment, net
    
    
    187,283
    
    
    
    154,120
    
    
    
    135,012Deferred tax asset, net
    
    
    35,235
    
    
    
    29,615
    
    
    
    22,636Goodwill
    
    
    76,674
    
    
    
    76,674
    
    
    
    76,674Core deposit intangible asset
    
    
    7,608
    
    
    
    8,395
    
    
    
    9,197Due from clearing agent
    
    
    3,963
    
    
    
    
    
    
    
    22,091Other assets
    
    
    49,182
    
    
    
    43,232
    
    
    
    61,344Total assets
    
    $
    6,402,357
    
    
    $
    6,471,411
    
    
    $
    6,883,051LIABILITIES AND STOCKHOLDERS EQUITYLiabilities:DepositsDemand
    
    $
    1,119,604
    
    
    $
    1,019,949
    
    
    $
    1,039,611NOW
    
    
    747,437
    
    
    
    755,708
    
    
    
    660,633Savings
    
    
    372,212
    
    
    
    313,889
    
    
    
    302,677Money market
    
    
    740,192
    
    
    
    846,441
    
    
    
    899,364Certificates of deposits
    
    
    855,561
    
    
    
    816,689
    
    
    
    789,533Total deposits
    
    
    3,835,006
    
    
    
    3,752,676
    
    
    
    3,691,818Advances from FHLB
    
    
    1,127,065
    
    
    
    1,283,532
    
    
    
    1,695,265Securities sold under agreements to repurchase
    
    
    196,099
    
    
    
    116,026
    
    
    
    246,360Federal funds purchased and other short term borrowings
    
    
    224,322
    
    
    
    139,475
    
    
    
    109,500Secured borrowings
    
    
    
    
    
    
    138,270
    
    
    
    165,375Subordinated debentures, notes and bonds payable
    
    
    37,378
    
    
    
    39,092
    
    
    
    35,232Junior subordinated debentures
    
    
    263,266
    
    
    
    263,266
    
    
    
    263,266Securities sold but not yet purchased
    
    
    39,173
    
    
    
    35,177
    
    
    
    28,184Due to clearing agent
    
    
    38,730
    
    
    
    24,486
    
    
    
    Other liabilities
    
    
    120,617
    
    
    
    163,075
    
    
    
    137,657Total liabilities
    
    
    5,881,656
    
    
    
    5,955,075
    
    
    
    6,372,657Commitments and contingencies (See note 12)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 56,338,922, 55,884,089 and 55,766,653 shares
    
    
    564
    
    
    
    559
    
    
    
    558Class 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
    
    
    261,325
    
    
    
    261,720
    
    
    
    260,829Unearned compensation  restricted stock grants
    
    
    
    
    
    
    (936
    )
    
    
    (916
    )Retained earnings
    
    
    271,450
    
    
    
    261,279
    
    
    
    251,129Total stockholders equity before accumulated
other comprehensive loss
    
    
    533,388
    
    
    
    522,671
    
    
    
    511,649Accumulated other comprehensive loss
    
    
    (12,687
    )
    
    
    (6,335
    )
    
    
    (1,255
    )Total stockholders equity
    
    
    520,701
    
    
    
    516,336
    
    
    
    510,394Total liabilities and stockholders equity
    
    $
    6,402,357
    
    
    $
    6,471,411
    
    
    $
    6,883,051
  4




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF OPERATIONS -UNAUDITED
 For the Three Months
    
    
    For the Six Months(In thousands, except share and per share data)
    
    Ended June 30,
    
    
    Ended June 30,Interest income:
    
    2006
    
    
    2005
    
    
    2006
    
    
    2005Interest and fees on loans
    
    $
    75,765
    
    
    $
    73,581
    
    
    $
    151,151
    
    
    $
    142,098Interest on debt securities available for sale
    
    
    4,314
    
    
    
    5,258
    
    
    
    8,619
    
    
    
    10,553Interest on tax exempt securities
    
    
    4,506
    
    
    
    4,016
    
    
    
    8,735
    
    
    
    7,369Interest and dividends on other investment securities
    
    
    4,396
    
    
    
    4,443
    
    
    
    8,772
    
    
    
    8,807Broker dealer interest and dividends
    
    
    3,347
    
    
    
    3,242
    
    
    
    7,162
    
    
    
    6,061Total interest income
    
    
    92,328
    
    
    
    90,540
    
    
    
    184,439
    
    
    
    174,888Interest expense:Interest on deposits
    
    
    13,852
    
    
    
    9,534
    
    
    
    26,606
    
    
    
    17,829Interest on advances from FHLB
    
    
    13,007
    
    
    
    15,604
    
    
    
    27,146
    
    
    
    29,278Interest on securities sold under agreements to
repurchase and federal funds purchased
    
    
    4,931
    
    
    
    2,646
    
    
    
    7,506
    
    
    
    4,745Interest on secured borrowings
    
    
    
    
    
    
    2,482
    
    
    
    2,401
    
    
    
    4,644Interest on subordinated debentures, notes and
bonds payable, and junior subordinated debentures
    
    
    7,891
    
    
    
    6,316
    
    
    
    15,475
    
    
    
    11,988Capitalized interest on real estate development
    
    
    (289
    )
    
    
    (437
    )
    
    
    (769
    )
    
    
    (889
    )Total interest expense
    
    
    39,392
    
    
    
    36,145
    
    
    
    78,365
    
    
    
    67,595Net interest income
    
    
    52,936
    
    
    
    54,395
    
    
    
    106,074
    
    
    
    107,293(Recovery from) provision for loan losses
    
    
    (20
    )
    
    
    820
    
    
    
    143
    
    
    
    (3,096
    )Net interest income after (recovery from) provision
for loan losses
    
    
    52,956
    
    
    
    53,575
    
    
    
    105,931
    
    
    
    110,389Non-interest income:Broker/dealer revenue
    
    
    51,381
    
    
    
    83,915
    
    
    
    105,943
    
    
    
    138,601Service charges on deposits
    
    
    21,274
    
    
    
    14,744
    
    
    
    40,373
    
    
    
    27,733Other service charges and fees
    
    
    7,353
    
    
    
    5,849
    
    
    
    13,575
    
    
    
    11,087Income (loss) from real estate operations
    
    
    114
    
    
    
    1,655
    
    
    
    (982
    )
    
    
    3,896Income from unconsolidated subsidiaries
    
    
    278
    
    
    
    137
    
    
    
    1,098
    
    
    
    268Securities activities, net
    
    
    2,830
    
    
    
    90
    
    
    
    5,371
    
    
    
    192Gains associated with debt redemption
    
    
    1,092
    
    
    
    
    
    
    
    1,528
    
    
    
    Gains on sales of office properties and equipment, net
    
    
    1,806
    
    
    
    293
    
    
    
    1,778
    
    
    
    293Other
    
    
    2,876
    
    
    
    2,520
    
    
    
    5,242
    
    
    
    5,803Total non-interest income
    
    
    89,004
    
    
    
    109,203
    
    
    
    173,926
    
    
    
    187,873Non-interest expense:Employee compensation and benefits
    
    
    80,011
    
    
    
    78,391
    
    
    
    160,211
    
    
    
    144,186Occupancy and equipment
    
    
    17,516
    
    
    
    13,953
    
    
    
    33,763
    
    
    
    27,190Impairment of office properties and equipment
    
    
    
    
    
    
    3,706
    
    
    
    
    
    
    
    3,706Advertising and promotion
    
    
    8,644
    
    
    
    8,069
    
    
    
    18,601
    
    
    
    14,367Professional fees
    
    
    4,189
    
    
    
    4,316
    
    
    
    8,439
    
    
    
    8,397Communications
    
    
    3,930
    
    
    
    3,508
    
    
    
    7,884
    
    
    
    6,713Floor broker and clearing fees
    
    
    2,142
    
    
    
    2,012
    
    
    
    4,861
    
    
    
    4,380Cost associated with debt redemption
    
    
    1,034
    
    
    
    
    
    
    
    1,457
    
    
    
    Check losses
    
    
    1,875
    
    
    
    545
    
    
    
    3,121
    
    
    
    1,115Other
    
    
    12,422
    
    
    
    9,643
    
    
    
    23,094
    
    
    
    18,874Total non-interest expense
    
    
    131,763
    
    
    
    124,143
    
    
    
    261,431
    
    
    
    228,928Income before income taxes
    
    
    10,197
    
    
    
    38,635
    
    
    
    18,426
    
    
    
    69,334Provision for income taxes
    
    
    2,075
    
    
    
    14,098
    
    
    
    3,592
    
    
    
    24,919Net income
    
    $
    8,122
    
    
    $
    24,537
    
    
    $
    14,834
    
    
    $
    44,415
   5




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS  UNAUDITED
 For the Three Months
    
    
    For the Six MonthsEnded June 30,
    
    
    Ended June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Earnings per shareBasic earnings per share
    
    $
    0.13
    
    
    $
    0.41
    
    
    $
    0.24
    
    
    $
    0.74Diluted earnings per share
    
    $
    0.13
    
    
    $
    0.38
    
    
    $
    0.24
    
    
    $
    0.69Cash dividends per Class A share
    
    $
    0.038
    
    
    $
    0.035
    
    
    $
    0.038
    
    
    $
    0.070Cash dividends per Class B share
    
    $
    0.038
    
    
    $
    0.035
    
    
    $
    0.038
    
    
    $
    0.070Basic weighted average number of common shares
outstanding
    
    
    61,324,163
    
    
    
    60,452,710
    
    
    
    61,165,666
    
    
    
    60,263,210Diluted weighted average number of common and common
equivalent shares outstanding
    
    
    62,819,871
    
    
    
    63,161,289
    
    
    
    62,791,678
    
    
    
    63,175,886
  6




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME
 For of the Six Months Ended June 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
    
    $
    44,415
    
    
    
    
    
    
    
    
    
    
    
    44,415
    
    
    
    
    
    
    
    
    
    
    
    44,415Other comprehensive income (loss), net of tax:Unrealized losses on securities available for sale
(less income tax benefit of $159)
    
    
    (140
    )Reclassification adjustment for net gain
included in net income (less income tax
expense of $69)
    
    
    (123
    )Other comprehensive income (loss)
    
    
    (263
    )Comprehensive income
    
    $
    44,152Dividends on Class A Common Stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,899
    )
    
    
    
    
    
    
    
    
    
    
    (3,899
    )Dividends on Class B Common Stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (342
    )
    
    
    
    
    
    
    
    
    
    
    (342
    )Issuance of Class A common stock upon exercise
of stock options
    
    
    
    
    
    
    9
    
    
    
    1,929
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,938Tax effect relating to share-based
compensation
    
    
    
    
    
    
    
    
    
    
    4,190
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,190Retirement of Class A Common Stock relating to
exercise of stock options
    
    
    
    
    
    
    (3
    )
    
    
    (4,645
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,648
    )Amortization
of unearned compensation  restrictedstock grants
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    85
    
    
    
    
    
    
    
    85Retirement of Ryan Beck common stock
    
    
    
    
    
    
    
    
    
    
    (347
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (347
    )Net change in accumulated other comprehensive
loss, net of income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (263
    )
    
    
    (263
    )BALANCE, JUNE 30, 2005
    
    
    
    
    
    $
    607
    
    
    $
    260,829
    
    
    $
    251,129
    
    
    $
    (916
    )
    
    $
    (1,255
    )
    
    $
    510,394BALANCE, DECEMBER 31, 2005
    
    
    
    
    
    $
    608
    
    
    $
    261,720
    
    
    $
    261,279
    
    
    $
    (936
    )
    
    $
    (6,335
    )
    
    $
    516,336Net income
    
    $
    14,834
    
    
    
    
    
    
    
    
    
    
    
    14,834
    
    
    
    
    
    
    
    
    
    
    
    14,834Other comprehensive (loss), net of tax:Unrealized loss on securities available for sale
(less income tax benefit of $1,961)
    
    
    (3,053
    )Reclassification adjustment for net gain
included in net income (less income tax
expense of $2,072)
    
    
    (3,299
    )Other comprehensive loss
    
    
    (6,352
    )Comprehensive income
    
    $
    8,482Dividends on Class A common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,293
    )
    
    
    
    
    
    
    
    
    
    
    (4,293
    )Dividends on Class B common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (370
    )
    
    
    
    
    
    
    
    
    
    
    (370
    )Issuance of Class A common stock upon exercise
of stock options
    
    
    
    
    
    
    13
    
    
    
    5,374
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,387Tax effect relating to share-based compensation
    
    
    
    
    
    
    
    
    
    
    3,553
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,553Retirement of Class A common stock relating to
exercise of stock options
    
    
    
    
    
    
    (5
    )
    
    
    (7,009
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,014
    )Purchase and retirement of Class A common stock
    
    
    
    
    
    
    (2
    )
    
    
    (3,624
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,626
    )Share based compensation expense
    
    
    
    
    
    
    
    
    
    
    2,246
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,246Adoption of FAS 123R
    
    
    
    
    
    
    (1
    )
    
    
    (935
    )
    
    
    
    
    
    
    936
    
    
    
    
    
    
    
    Net change in accumulated other comprehensive
loss, net of income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,352
    )
    
    
    (6,352
    )BALANCE, JUNE 30, 2006
    
    
    
    
    
    $
    613
    
    
    $
    261,325
    
    
    $
    271,450
    
    
    $
    
    
    
    $
    (12,687
    )
    
    $
    520,701
  7




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS  UNAUDITED
 For the Six MonthsEnded June 30,(In thousands)
    
    2006
    
    
    2005Operating activities:Net income
    
    $
    14,834
    
    
    $
    44,415Adjustment to reconcile net income to net cash
(used in) provided by operating activities:Provision (recovery) and valuation allowances, net (1)
    
    
    293
    
    
    
    (3,046
    )Depreciation, amortization and accretion, net
    
    
    10,365
    
    
    
    8,829Amortization of deferred revenue
    
    
    3,344
    
    
    
    1,568Amortization of intangible assets
    
    
    787
    
    
    
    825Share-based compensation expense related to stock
options and restricted stock
    
    
    2,246
    
    
    
    Excess tax benefits from share-based compensation
    
    
    (3,553
    )
    
    
    Securities activities, net
    
    
    (5,371
    )
    
    
    (192
    )Net gains on sale of real estate owned
    
    
    (724
    )
    
    
    (882
    )Net gains on sales of loans held for sale
    
    
    (294
    )
    
    
    (226
    )Gains on sales of property and equipment
    
    
    (1,778
    )
    
    
    (293
    )Gain on sale of branch
    
    
    
    
    
    
    (922
    )Increase in deferred tax benefits
    
    
    (1,587
    )
    
    
    (2,208
    )Net gains associated with debt redemptions
    
    
    (71
    )
    
    
    Impairment of office properties and equipment
    
    
    
    
    
    
    3,706Increase in forgivable notes receivable, net
    
    
    (2,332
    )
    
    
    (2,675
    )Originations of loans held for sale, net
    
    
    (44,081
    )
    
    
    (35,678
    )Proceeds from sales of loans held for sale
    
    
    41,281
    
    
    
    32,766(Increase) decrease in real estate held for development and
sale
    
    
    (1,955
    )
    
    
    3,710Decrease in securities owned, net
    
    
    5,635
    
    
    
    16,348Increase (decrease) in securities sold but not yet purchased
    
    
    3,996
    
    
    
    (11,278
    )Increase in accrued interest receivable
    
    
    (1,165
    )
    
    
    (5,288
    )Increase in other assets
    
    
    (6,294
    )
    
    
    (22,238
    )Increase (decrease) in due to clearing agent
    
    
    10,281
    
    
    
    (5,472
    )Decrease in other liabilities
    
    
    (42,249
    )
    
    
    (3,251
    )Net cash (used in) provided by operating activities
    
    
    (18,392
    )
    
    
    18,518
   8




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS  UNAUDITED
 For the Six MonthsEnded June 30,(In thousands)
    
    2006
    
    
    2005Investing activities:Proceeds from redemption and maturities of investment
securities and tax certificates
    
    
    84,669
    
    
    
    96,204Purchase of investment securities and tax certificates
    
    
    (135,145
    )
    
    
    (191,661
    )Purchase of securities available for sale
    
    
    (86,820
    )
    
    
    (177,631
    )Proceeds from sales and maturities of securities
available for sale
    
    
    93,641
    
    
    
    175,839Purchases of FHLB stock
    
    
    (15,075
    )
    
    
    (21,725
    )Redemption of FHLB stock
    
    
    22,339
    
    
    
    11,982Investments in unconsolidated subsidiaries
    
    
    (4,081
    )
    
    
    Distributions from unconsolidated subsidiaries
    
    
    4,549
    
    
    
    Net repayments (purchases and originations) of loans
    
    
    30,379
    
    
    
    (231,606
    )Proceeds from sales of real estate owned
    
    
    1,708
    
    
    
    2,189Proceeds from the sale of property and equipment
    
    
    8
    
    
    
    664Purchases of office property and equipment
    
    
    (39,697
    )
    
    
    (17,068
    )Cash outflows from the sale of branch
    
    
    
    
    
    
    (13,605
    )Net cash used in investing activities
    
    
    (43,525
    )
    
    
    (366,418
    )Financing activities:Net increase in deposits
    
    
    82,330
    
    
    
    252,332Repayments of FHLB advances
    
    
    (1,436,344
    )
    
    
    (689,166
    )Proceeds from FHLB advances
    
    
    1,280,000
    
    
    
    840,000Increase (decrease) in securities sold under agreements
to repurchase
    
    
    80,073
    
    
    
    (50,283
    )Decrease in federal funds purchased
    
    
    84,847
    
    
    
    4,500Proceeds from secured borrowings
    
    
    
    
    
    
    30,364Repayments of secured borrowings
    
    
    (26,516
    )
    
    
    Repayment of notes and bonds payable
    
    
    (6,714
    )
    
    
    (2,509
    )Proceeds from notes payable
    
    
    5,000
    
    
    
    Excess tax benefits from share-based compensation
    
    
    3,553
    
    
    
    Proceeds from issuance of Class A common stock
    
    
    1,053
    
    
    
    809Payment of the minimum withholding tax upon the
exercise
of stock options
    
    
    (2,675
    )
    
    
    (3,519
    )Purchase and retirement of Class A common stock
    
    
    (3,631
    )
    
    
    Purchase of subsidiary common stock
    
    
    
    
    
    
    (491
    )Dividends paid
    
    
    (4,663
    )
    
    
    (4,241
    )Net cash provided by financing activities
    
    
    56,313
    
    
    
    377,796(Decrease) increase in cash and cash equivalents
    
    
    (5,604
    )
    
    
    29,896Cash and cash equivalents at the beginning of period
    
    
    170,261
    
    
    
    135,060Cash and cash equivalents at end of period
    
    $
    164,657
    
    
    $
    164,956
   9




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS  UNAUDITED
 For the Six MonthsEnded June 30,(In thousands)
    
    2006
    
    
    2005Cash paid forInterest on borrowings and deposits
    
    $
    80,080
    
    
    $
    61,394Income taxes
    
    
    20,723
    
    
    
    8,496Supplementary disclosure of non-cash investing and
financing activities:Loans transferred to REO
    
    
    1,924
    
    
    
    1,793Decreases in current income taxes payable from the tax
effect of fair value of employee stock options
    
    
    
    
    
    
    4,190Reduction in loans participations sold accounted for
as secured borrowings
    
    
    111,754
    
    
    
    Exchange of branch facilities
    
    
    2,350
    
    
    
    Change in accumulated other comprehensive income
    
    
    (6,352
    )
    
    
    (263
    )Change in deferred taxes on other comprehensive income
    
    
    (4,033
    )
    
    
    (228
    )Securities purchased pending settlement
    
    
    
    
    
    
    3,557Issuance and retirement of Class A common stock accepted
as consideration for the exercise price of stock options
    
    
    4,334
    
    
    
    1,129
 
 (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 Six MonthsEnded June 30,
    
    
    Ended June 30,(in thousands, except share data)
    
    2006
    
    
    2005
    
    
    2006
    
    
    2005Net income, as reported
    
    $
    8,122
    
    
    $
    24,537
    
    
    $
    14,834
    
    
    $
    44,415Add: Stock-based employee compensation
expense included in reported net
income,
net of related income tax effects
    
    
    1,177
    
    
    
    41
    
    
    
    2,246
    
    
    
    85Deduct: Total stock-based employee
compensation expense determined under
fair value based method for all awards,
net of related income tax effects
    
    
    (1,177
    )
    
    
    (505
    )
    
    
    (2,246
    )
    
    
    (1,021
    )Pro forma net income
    
    $
    8,122
    
    
    $
    24,073
    
    
    $
    14,834
    
    
    $
    43,479Earnings per share:Basic as reported
    
    $
    0.13
    
    
    $
    0.41
    
    
    $
    0.24
    
    
    $
    0.74Basic pro forma
    
    $
    N/A
    
    
    $
    0.40
    
    
    $
    N/A
    
    
    $
    0.72Diluted as reported
    
    $
    0.13
    
    
    $
    0.38
    
    
    $
    0.24
    
    
    $
    0.69Diluted pro forma
    
    $
    N/A
    
    
    $
    0.37
    
    
    $
    N/A
    
    
    $
    0.68
  Class A
    
    
    WeightedNonvested
    
    
    AverageRestricted
    
    
    Grant dateStock
    
    
    Fair ValueOutstanding at December 31,
2004
    
    
    147,500
    
    
    $
    7.54Vested
    
    
    (19,500
    )
    
    
    7.17Forfeited
    
    
    
    
    
    
    Issued
    
    
    
    
    
    
    Outstanding at June 30, 2005
    
    
    128,000
    
    
    $
    7.60Outstanding at December 31,
2005
    
    
    132,634
    
    
    $
    8.00Vested
    
    
    (24,134
    )
    
    
    9.42Forfeited
    
    
    
    
    
    
    Issued
    
    
    10,000
    
    
    
    14.26Outstanding at June 30, 2006
    
    
    118,500
    
    
    $
    8.23
   13




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
   Employees
    
    
    DirectorsStock Price
    
    $
    13.60
    
    
    $
    13.95Exercise Price
    
    $
    13.60
    
    
    $
    13.95Interest Rate
    
    
    4.66%
    
    
    
    4.66%Dividend Rate
    
    
    1.12%
    
    
    
    1.09%Volatility
    
    
    33.00%
    
    
    
    33.00%Option Life (years)
    
    
    7.50
    
    
    
    5.00Option Value
    
    $
    5.47
    
    
    $
    4.66Annual Forfeiture Rate
    
    
    3.00%
    
    
    
    0%
  Class AOutstandingOptionsOutstanding at December 31, 2004
    
    
    6,174,845Exercised
    
    
    (813,770
    )Forfeited
    
    
    (25,785
    )Issued
    
    
    Outstanding at June 30, 2005
    
    
    5,335,290Outstanding at December 31, 2005
    
    
    6,039,253Exercised
    
    
    (1,324,281
    )Forfeited
    
    
    (148,816
    )Issued
    
    
    37,408Outstanding at June 30, 2006
    
    
    4,603,564Available for grant at June 30, 2006
    
    
    5,126,253
 14




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  For the Six MonthsEnded June 30,2006
    
    
    2005Weighted average exercise price of options
outstanding
    
    $
    10.43
    
    
    $
    7.45Weighted average exercise price of options exercised
    
    $
    4.07
    
    
    $
    2.38Weighted average price of options forfeited
    
    $
    13.74
    
    
    $
    10.35
   Options Outstanding
    
    
    Options ExercisableWeighted-
    
    Weighted-
    
    
    
    
    
    
    Weighted-Class of
    
    Range of
    
    Number
    
    
    Average
    
    Average
    
    
    Number
    
    
    AverageCommon
    
    Exercise
    
    Outstanding
    
    
    Remaining
    
    Exercise
    
    
    Exercisable
    
    
    ExerciseStock
    
    Prices
    
    at 06/30/06
    
    
    Contractual Life
    
    Price
    
    
    at 06/30/06
    
    
    PriceA
    
    $1.90 to $3.83
    
    
    589,118
    
    
    4.1 years
    
    $
    2.98
    
    
    
    589,118
    
    
    $
    2.98A
    
    $3.84 to  $6.70
    
    
    676,057
    
    
    2.1 years
    
    
    4.87
    
    
    
    676,057
    
    
    
    4.87A
    
    $6.71 to  $9.36
    
    
    1,741,166
    
    
    6.2 years
    
    
    7.98
    
    
    
    61,920
    
    
    
    7.97A
    
    $9.37 to  $18.19
    
    
    114,952
    
    
    7.4 years
    
    
    12.68
    
    
    
    37,452
    
    
    
    10.27A
    
    $18.20 to $19.02
    
    
    1,482,271
    
    
    8.5 years
    
    
    18.62
    
    
    
    59,371
    
    
    
    18.484,603,564
    
    
    6.1 years
    
    $
    10.43
    
    
    
    1,423,918
    
    
    $
    4.93
  Options Outstanding
    
    
    Options ExercisableWeighted-
    
    Weighted-
    
    
    
    
    
    
    Weighted-Class of
    
    Range of
    
    Number
    
    
    Average
    
    Average
    
    
    Number
    
    
    AverageCommon
    
    Exercise
    
    Outstanding
    
    
    Remaining
    
    Exercise
    
    
    Exercisable
    
    
    ExerciseStock
    
    Prices
    
    at 06/30/05
    
    
    Contractual Life
    
    Price
    
    
    at 06/30/05
    
    
    PriceA
    
    $1.90 to  $3.83
    
    
    1,468,963
    
    
    3.9 years
    
    $
    3.21
    
    
    
    771,526
    
    
    $
    3.40A
    
    $3.84 to  $6.70
    
    
    1,227,779
    
    
    2.9 years
    
    
    4.96
    
    
    
    1,227,779
    
    
    
    4.96A
    
    $6.71 to  $9.36
    
    
    1,839,904
    
    
    6.9 years
    
    
    7.98
    
    
    
    65,310
    
    
    
    8.01A
    
    $9.37 to  $18.19
    
    
    30,044
    
    
    2.8 years
    
    
    9.36
    
    
    
    30,044
    
    
    
    9.36A
    
    $18.20 to $19.02
    
    
    768,600
    
    
    8.4 years
    
    
    18.20
    
    
    
    35,000
    
    
    
    18.205,335,290
    
    
    5.3 years
    
    $
    7.45
    
    
    
    2,129,659
    
    
    $
    4.77
  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 June 30, 2005
    
    
    2,260,000Outstanding at December 31, 2005
    
    
    2,069,000Exercised
    
    
    Forfeited
    
    
    (22,500
    )Issued
    
    
    377,500Outstanding at June 30, 2006
    
    
    2,424,000Available for grant at June 30, 2006
    
    
    13,500
   For the Six MonthsEnded June 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
    
    
    9.32
    %
    
    
    
    %
  16




---



##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  Options Outstanding
    
    Options ExercisableWeighted-
    
    
    Weighted-
    
    
    
    
    
    Weighted-Range of
    
    Number
    
    Average
    
    
    Average
    
    Number
    
    
    AverageExercise
    
    Outstanding
    
    Remaining
    
    
    Exercise
    
    Exercisable
    
    
    ExercisePrices
    
    at 06/30/06
    
    Contractual Life
    
    
    Price
    
    at 06/30/06
    
    
    Price$1.60 to $1.68
    
    1,320,000
    
    5.8 years
    
    $1.62
    
    
    1,252,500
    
    
    $
    1.61$5.26 to $5.46
    
    726,500
    
    7.7 years
    
    5.27
    
    
    
    
    
    
    $5.50 to $8.74
    
    377,500
    
    9.6 years
    
    8.74
    
    
    
    
    
    
    2,424,000
    
    7.0 years
    
    $3.82
    
    
    1,252,500
    
    
    $
    1.61
  Options Outstanding
    
    Options ExercisableWeighted-
    
    
    Weighted-
    
    
    
    
    
    Weighted-Range of
    
    Number
    
    Average
    
    
    Average
    
    Number
    
    
    AverageExercise
    
    Outstanding
    
    Remaining
    
    
    Exercise
    
    Exercisable
    
    
    ExercisePrices
    
    at 06/30/05
    
    Contractual Life
    
    
    Price
    
    at 06/30/05
    
    
    Price$1.60 to $1.68
    
    1,365,000
    
    6.6 years
    
    $1.62
    
    
    1,065,000
    
    
    $
    1.60$1.70 to $3.50
    
    75,000
    
    8.2 years
    
    3.36
    
    
    
    
    
    
    $5.26 to $5.46
    
    820,000
    
    8.1 years
    
    5.27
    
    
    
    
    
    
    2,260,000
    
    7.2 years
    
    $3.00
    
    
    1,065,000
    
    
    $
    1.60
  3. Class A Common Stock
   17




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 4. Advances from the Federal Home Loan Bank
    5. Impairment of Office Properties and Equipment
  6. Defined Benefit Pension Plan
  For the Three Months
    
    
    For the Six MonthsEnded June 30,
    
    
    Ended June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Service cost benefits earned during the period
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Interest cost on projected benefit obligation
    
    
    407
    
    
    
    388
    
    
    
    814
    
    
    
    776Expected return on plan assets
    
    
    (547
    )
    
    
    (525
    )
    
    
    (1,094
    )
    
    
    (1,050
    )Amortization of unrecognized net gains and
losses
    
    
    237
    
    
    
    168
    
    
    
    474
    
    
    
    336Net periodic pension expense
    
    $
    97
    
    
    $
    31
    
    
    $
    194
    
    
    $
    62
  18




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 7. Securities Owned
   June 30,
    
    
    December 31,
    
    
    June 30,2006
    
    
    2005
    
    
    2005States and municipal obligations
    
    $
    55,117
    
    
    $
    76,568
    
    
    $
    23,979Corporate debt
    
    
    4,771
    
    
    
    3,410
    
    
    
    6,817Obligations of U.S. Government
agencies
    
    
    56,509
    
    
    
    45,827
    
    
    
    29,402Equity securities
    
    
    30,400
    
    
    
    23,645
    
    
    
    20,572Mutual funds and other
    
    
    22,468
    
    
    
    28,359
    
    
    
    26,305Certificates of deposit
    
    
    5,392
    
    
    
    2,483
    
    
    
    2,020$
    174,657
    
    
    $
    180,292
    
    
    $
    109,095
   June 30,
    
    
    December 31,
    
    
    June 30,2006
    
    
    2005
    
    
    2005Equity securities
    
    $
    2,904
    
    
    $
    3,780
    
    
    $
    9,807Corporate debt
    
    
    1,146
    
    
    
    1,332
    
    
    
    3,881State and municipal obligations
    
    
    107
    
    
    
    41
    
    
    
    67Obligations of U.S. Government
agencies
    
    
    34,793
    
    
    
    29,653
    
    
    
    14,287Certificates of deposits
    
    
    223
    
    
    
    371
    
    
    
    142$
    39,173
    
    
    $
    35,177
    
    
    $
    28,184
   19




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 8. Loans Receivable
  June 30,
    
    
    December 31,
    
    
    June 30,2006
    
    
    2005
    
    
    2005Real estate loans:Residential
    
    $
    2,060,161
    
    
    $
    2,043,055
    
    
    $
    2,295,326Construction and development
    
    
    928,215
    
    
    
    1,339,576
    
    
    
    1,580,882Commercial
    
    
    1,065,646
    
    
    
    1,060,245
    
    
    
    1,053,380Small business
    
    
    174,018
    
    
    
    151,924
    
    
    
    139,233Loans to Levitt Corporation
    
    
    
    
    
    
    223
    
    
    
    4,746Other loans:Home equity
    
    
    524,735
    
    
    
    513,813
    
    
    
    494,904Commercial business
    
    
    148,730
    
    
    
    89,752
    
    
    
    84,497Small business  non-mortgage
    
    
    89,094
    
    
    
    83,429
    
    
    
    72,543Consumer loans
    
    
    15,489
    
    
    
    21,469
    
    
    
    13,743Deposit overdrafts
    
    
    6,458
    
    
    
    5,694
    
    
    
    5,434Discontinued loans products (1)
    
    
    593
    
    
    
    1,207
    
    
    
    5,266Total gross loans
    
    
    5,013,139
    
    
    
    5,310,387
    
    
    
    5,749,954Adjustments:Undisbursed portion of loans in
process
    
    
    (493,274
    )
    
    
    (649,296
    )
    
    
    (747,750
    )Premiums related to purchased loans
    
    
    3,303
    
    
    
    5,566
    
    
    
    6,633Deferred fees, net
    
    
    (2,729
    )
    
    
    (3,231
    )
    
    
    (4,068
    )Allowance for loan and lease losses
    
    
    (42,012
    )
    
    
    (41,192
    )
    
    
    (43,650
    )Loans receivable  net
    
    $
    4,478,427
    
    
    $
    4,622,234
    
    
    $
    4,961,119
 (1)
    
    Discontinued loan products consist of lease financings and indirect
consumer loans. These loan products were discontinued during prior periods.  9. Real Estate Held for Development and Sale
   June 30,
    
    
    December 31,
    
    
    June 30,2006
    
    
    2005
    
    
    2005Land and land
development costs
    
    $
    12,783
    
    
    $
    9,921
    
    
    $
    10,805Construction costs
    
    
    5,849
    
    
    
    8,264
    
    
    
    8,194Other costs
    
    
    4,953
    
    
    
    2,992
    
    
    
    2,515Branch banking facilities
    
    
    
    
    
    
    
    
    
    
    2,468Total
    
    $
    23,585
    
    
    $
    21,177
    
    
    $
    23,982
 20




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  For the Three Months
    
    
    For the Six MonthsEnded June 30,
    
    
    Ended June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Sales of real estate
    
    $
    1,100
    
    
    $
    5,773
    
    
    $
    7,613
    
    
    $
    14,801Cost of sales on real estate
    
    
    986
    
    
    
    4,118
    
    
    
    8,595
    
    
    
    10,905Income (loss) from of real
estate operations
    
    $
    114
    
    
    $
    1,655
    
    
    $
    (982
    )
    
    $
    3,896
 10. Related Parties
    21




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  For the Three Months Ended June 30,2005
    
    BFC
    
    
    Levitt
    
    
    TotalService Fees
    
    $
    74
    
    
    $
    167
    
    
    $
    241Rent
    
    
    22
    
    
    
    6
    
    
    
    28Total
    
    $
    96
    
    
    $
    173
    
    
    $
    269
 For the Six Months Ended June 30,2005
    
    BFC
    
    
    Levitt
    
    
    TotalService Fees
    
    $
    132
    
    
    $
    280
    
    
    $
    412Rent
    
    
    44
    
    
    
    12
    
    
    
    56Total
    
    $
    176
    
    
    $
    292
    
    
    $
    468
    11. Segment Reporting
   Reportable Segment
    
    Operating Segments AggregatedBankAtlantic
    
    Banking operations

Ryan Beck
    
    Investment banking and brokerage operationsParent Company
    
    BankAtlantic Bancorps operations, costs of acquisitions and financing activities
  22




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  Adjusting andParent
    
    
    Elimination
    
    
    SegmentBankAtlantic
    
    
    Ryan Beck
    
    
    Company
    
    
    Entries
    
    
    Total2006Interest income
    
    $
    87,744
    
    
    $
    3,991
    
    
    $
    662
    
    
    $
    (69
    )
    
    $
    92,328Interest expense
    
    
    (32,487
    )
    
    
    (1,514
    )
    
    
    (5,460
    )
    
    
    69
    
    
    
    (39,392
    )Recovery from loan losses
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20Non-interest income
    
    
    34,960
    
    
    
    51,381
    
    
    
    2,663
    
    
    
    
    
    
    
    89,004Non-interest expense
    
    
    (72,184
    )
    
    
    (57,749
    )
    
    
    (1,830
    )
    
    
    
    
    
    
    (131,763
    )Segments profit (loss)
before taxes
    
    
    18,053
    
    
    
    (3,891
    )
    
    
    (3,965
    )
    
    
    
    
    
    
    10,197(Provision) benefit for
for income taxes
    
    
    (5,301
    )
    
    
    1,524
    
    
    
    1,702
    
    
    
    
    
    
    
    (2,075
    )Segment net income (loss)
    
    $
    12,752
    
    
    $
    (2,367
    )
    
    $
    (2,263
    )
    
    $
    
    
    
    $
    8,122Total assets
    
    $
    6,048,396
    
    
    $
    232,830
    
    
    $
    789,865
    
    
    $
    (668,734
    )
    
    $
    6,402,3572005Interest income
    
    $
    86,473
    
    
    $
    3,489
    
    
    $
    613
    
    
    $
    (35
    )
    
    $
    90,540Interest expense
    
    
    (30,442
    )
    
    
    (968
    )
    
    
    (4,770
    )
    
    
    35
    
    
    
    (36,145
    )Provision from loan losses
    
    
    (820
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (820
    )Non-interest income
    
    
    24,965
    
    
    
    83,915
    
    
    
    342
    
    
    
    (19
    )
    
    
    109,203Non-interest expense
    
    
    (58,316
    )
    
    
    (64,428
    )
    
    
    (1,418
    )
    
    
    19
    
    
    
    (124,143
    )Segments profit (loss)
before taxes
    
    
    21,860
    
    
    
    22,008
    
    
    
    (5,233
    )
    
    
    
    
    
    
    38,635(Provision) benefit for
for income taxes
    
    
    (7,089
    )
    
    
    (8,977
    )
    
    
    1,968
    
    
    
    
    
    
    
    (14,098
    )Segment net income (loss)
    
    $
    14,771
    
    
    $
    13,031
    
    
    $
    (3,265
    )
    
    $
    
    
    
    $
    24,537Total assets
    
    $
    6,561,277
    
    
    $
    197,919
    
    
    $
    771,869
    
    
    $
    (648,014
    )
    
    $
    6,883,051
 23




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  Adjusting andParent
    
    
    Elimination
    
    
    SegmentBankAtlantic
    
    
    Ryan Beck
    
    
    Company
    
    
    Entries
    
    
    Total2006Interest income
    
    $
    175,088
    
    
    $
    8,229
    
    
    $
    1,259
    
    
    $
    (137
    )
    
    $
    184,439Interest expense
    
    
    (64,692
    )
    
    
    (3,135
    )
    
    
    (10,675
    )
    
    
    137
    
    
    
    (78,365
    )Provision for loan losses
    
    
    (143
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (143
    )Non-interest income
    
    
    61,967
    
    
    
    105,943
    
    
    
    6,015
    
    
    
    1
    
    
    
    173,926Non-interest expense
    
    
    (139,567
    )
    
    
    (118,084
    )
    
    
    (3,779
    )
    
    
    (1
    )
    
    
    (261,431
    )Segments profit (loss)
before taxes
    
    
    32,653
    
    
    
    (7,047
    )
    
    
    (7,180
    )
    
    
    
    
    
    
    18,426(Provision) benefit for
for income taxes
    
    
    (9,483
    )
    
    
    3,115
    
    
    
    2,776
    
    
    
    
    
    
    
    (3,592
    )Segment net income (loss)
    
    $
    23,170
    
    
    $
    (3,932
    )
    
    $
    (4,404
    )
    
    $
    
    
    
    $
    14,8342005Interest income
    
    $
    167,219
    
    
    $
    6,436
    
    
    $
    1,291
    
    
    $
    (58
    )
    
    $
    174,888Interest expense
    
    
    (56,843
    )
    
    
    (1,470
    )
    
    
    (9,340
    )
    
    
    58
    
    
    
    (67,595
    )Recovery from loan losses
    
    
    3,096
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,096Non-interest income
    
    
    48,506
    
    
    
    138,601
    
    
    
    874
    
    
    
    (108
    )
    
    
    187,873Non-interest expense
    
    
    (108,580
    )
    
    
    (116,993
    )
    
    
    (3,463
    )
    
    
    108
    
    
    
    (228,928
    )Segments profit (loss)
before taxes
    
    
    53,398
    
    
    
    26,574
    
    
    
    (10,638
    )
    
    
    
    
    
    
    69,334(Provision) benefit for
for income taxes
    
    
    (17,766
    )
    
    
    (11,013
    )
    
    
    3,860
    
    
    
    
    
    
    
    (24,919
    )Segment net income (loss)
    
    $
    35,632
    
    
    $
    15,561
    
    
    $
    (6,778
    )
    
    $
    
    
    
    $
    44,415
 24




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 12. Financial instruments with off-balance sheet risk
  June 30,
    
    
    December 31,
    
    
    June 30,2006
    
    
    2005
    
    
    2005Commitments to sell fixed rate residential loans
    
    $
    24,575
    
    
    $
    13,634
    
    
    $
    21,771Commitments to sell variable rate residential loans
    
    
    4,518
    
    
    
    4,438
    
    
    
    5,690Commitments to sell variable rate commercial loans
    
    
    33,399
    
    
    
    
    
    
    
    Commitments to purchase variable rate residential
loans
    
    
    144,576
    
    
    
    6,689
    
    
    
    13,000Commitments to originate loans held for sale
    
    
    29,952
    
    
    
    16,220
    
    
    
    19,618Commitments to originate loans
    
    
    320,132
    
    
    
    311,081
    
    
    
    401,607Commitments to extend credit, including the
undisbursed
portion of loans in process
    
    
    965,098
    
    
    
    1,151,054
    
    
    
    1,215,610Commitments to purchase branch facilities land
    
    
    6,199
    
    
    
    5,334
    
    
    
    Standby letters of credit
    
    
    70,013
    
    
    
    67,868
    
    
    
    67,831Commercial lines of credit
    
    
    104,443
    
    
    
    119,639
    
    
    
    100,204
  13. Branch Sale
   AmountAssets sold:Loans
    
    $
    2,235Property and equipment
    
    
    733Liabilities transferred:Deposits
    
    
    (17,716
    )Accrued interest payable
    
    
    (27
    )Net assets sold
    
    
    (14,775
    )Write-off of core deposit intangible assets
    
    
    248Gain on sale of branch
    
    
    922Net cash outflows from sale of branch
    
    $
    (13,605
    )
 25




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 14. Earnings per Share
  For the Three Months Ended
    
    
    For the Six Months EndedJune 30,
    
    
    June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Basic earnings per share:Net Income
    
    $
    8,122
    
    
    $
    24,537
    
    
    $
    14,834
    
    
    $
    44,415Basic weighted average number of
common shares outstanding
    
    
    61,324,163
    
    
    
    60,452,710
    
    
    
    61,165,666
    
    
    
    60,263,210Basic earnings per share
    
    $
    0.13
    
    
    $
    0.41
    
    
    $
    0.24
    
    
    $
    0.74Diluted earnings per share:Net Income
    
    $
    8,122
    
    
    $
    24,537
    
    
    $
    14,834
    
    
    $
    44,415Subsidiary stock options
    
    
    
    
    
    
    (665
    )
    
    
    
    
    
    
    (785
    )Income available after assumed conversion
    
    $
    8,122
    
    
    $
    23,872
    
    
    $
    14,834
    
    
    $
    43,630Basic weighted average shares outstanding
    
    
    61,324,163
    
    
    
    60,452,710
    
    
    
    61,165,666
    
    
    
    60,263,210Common stock equivalents resulting from
stock-based compensation
    
    
    1,495,707
    
    
    
    2,708,579
    
    
    
    1,626,012
    
    
    
    2,912,676Diluted weighted average shares
outstanding
    
    
    62,819,870
    
    
    
    63,161,289
    
    
    
    62,791,678
    
    
    
    63,175,886Diluted earnings per share
    
    $
    0.13
    
    
    $
    0.38
    
    
    $
    0.24
    
    
    $
    0.69
  15. Investment in unconsolidated subsidiaries
  As ofJune 30,
    
    
    December 31,
    
    
    June 30,2006
    
    
    2005
    
    
    2005Statutory business trusts
    
    $
    7,910
    
    
    $
    7,910
    
    
    $
    7,910Rental real estate joint venture
    
    
    4,086
    
    
    
    4,554
    
    
    
    Total investments in
unconsolidated subsidiaries
    
    $
    11,996
    
    
    $
    12,464
    
    
    $
    7,910
  For the Three Months
    
    
    For the Six MonthsEnded June 30,
    
    
    Ended June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Equity in rental real estate joint
venture earnings
    
    $
    122
    
    
    $
    
    
    
    $
    792
    
    
    $
    Equity in statutory trusts earnings
    
    
    156
    
    
    
    137
    
    
    
    306
    
    
    
    268Income from unconsolidated subsidiaries
    
    $
    278
    
    
    $
    137
    
    
    $
    1,098
    
    
    $
    268
  26




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
    16. Nonmonetary Transactions
   17. Settlement of Compliance Matter
  18. New Accounting Pronouncements
   27




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##### Table of Contents



Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   Critical Accounting Policies
  28




---



##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  Share-based Compensation
    29




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  For the Three Months Ended June 30,
    
    
    For the Six Months Ended June 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeBankAtlantic
    
    $
    12,752
    
    
    $
    14,771
    
    
    $
    (2,019
    )
    
    $
    23,170
    
    
    $
    35,632
    
    
    $
    (12,462
    )Ryan Beck
    
    
    (2,367
    )
    
    
    13,031
    
    
    
    (15,398
    )
    
    
    (3,932
    )
    
    
    15,561
    
    
    
    (19,493
    )Parent Company
    
    
    (2,263
    )
    
    
    (3,265
    )
    
    
    1,002
    
    
    
    (4,404
    )
    
    
    (6,778
    )
    
    
    2,374Net income
    
    $
    8,122
    
    
    $
    24,537
    
    
    $
    (16,415
    )
    
    $
    14,834
    
    
    $
    44,415
    
    
    $
    (29,581
    )
 For the Three Months Ended June 30, 2006 Compared to the Same 2005 Period:
     For the Six Months Ended June 30, 2006 Compared to the Same 2005 Period:
  30




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 BankAtlantic Results of Operations
 Net interest income
 Bank Operations Business Segment
 Average Balance Sheet  Yield / Rate Analysis
 For the Three Months EndedJune 30, 2006
    
    
    June 30, 2005Average
    
    
    Revenue/
    
    
    Yield/
    
    
    Average
    
    
    Revenue/
    
    
    Yield/(in thousands)
    
    Balance
    
    
    Expense
    
    
    Rate
    
    
    Balance
    
    
    Expense
    
    
    RateLoans:Residential real estate
    
    $
    2,047,430
    
    
    
    26,288
    
    
    
    5.14
    %
    
    $
    2,262,214
    
    
    
    27,597
    
    
    
    4.88
    %Commercial real estate
    
    
    1,480,314
    
    
    
    30,965
    
    
    
    8.37
    
    
    
    1,726,861
    
    
    
    30,298
    
    
    
    7.02Loan participations sold
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    164,778
    
    
    
    2,483
    
    
    
    6.04Consumer
    
    
    546,624
    
    
    
    10,175
    
    
    
    7.45
    
    
    
    505,338
    
    
    
    7,595
    
    
    
    6.01Lease financing
    
    
    173
    
    
    
    4
    
    
    
    9.25
    
    
    
    4,710
    
    
    
    131
    
    
    
    11.13Commercial business
    
    
    148,604
    
    
    
    3,239
    
    
    
    8.72
    
    
    
    85,778
    
    
    
    1,598
    
    
    
    7.45Small business
    
    
    255,701
    
    
    
    5,093
    
    
    
    7.97
    
    
    
    206,272
    
    
    
    3,788
    
    
    
    7.35Total loans
    
    
    4,478,846
    
    
    
    75,764
    
    
    
    6.77
    
    
    
    4,955,951
    
    
    
    73,490
    
    
    
    5.93Investments  tax exempt
    
    
    398,404
    
    
    
    5,817
    (1)
    
    
    5.84
    
    
    
    368,264
    
    
    
    5,329
    (1)
    
    
    5.79Investments  taxable
    
    
    583,026
    
    
    
    8,197
    
    
    
    5.62
    
    
    
    722,628
    
    
    
    9,520
    
    
    
    5.27Total interest earning assets
    
    
    5,460,276
    
    
    
    89,778
    
    
    
    6.58
    %
    
    
    6,046,843
    
    
    
    88,339
    
    
    
    5.84
    %Goodwill and core deposit intangibles
    
    
    78,301
    
    
    
    
    
    
    
    
    
    
    
    79,910Other non-interest earning assets
    
    
    366,784
    
    
    
    
    
    
    
    
    
    
    
    298,018Total Assets
    
    $
    5,905,361
    
    
    
    
    
    
    
    
    
    
    $
    6,424,771Deposits:Savings
    
    $
    364,946
    
    
    
    523
    
    
    
    0.57
    %
    
    $
    301,331
    
    
    
    209
    
    
    
    0.28
    %NOW
    
    
    764,738
    
    
    
    1,023
    
    
    
    0.54
    
    
    
    685,769
    
    
    
    723
    
    
    
    0.42Money market
    
    
    765,805
    
    
    
    3,974
    
    
    
    2.08
    
    
    
    906,514
    
    
    
    3,295
    
    
    
    1.46Certificate of deposit
    
    
    844,318
    
    
    
    8,331
    
    
    
    3.96
    
    
    
    782,335
    
    
    
    5,307
    
    
    
    2.72Total interest bearing deposits
    
    
    2,739,807
    
    
    
    13,851
    
    
    
    2.03
    
    
    
    2,675,949
    
    
    
    9,534
    
    
    
    1.43Short-term borrowed funds
    
    
    402,390
    
    
    
    5,001
    
    
    
    4.98
    
    
    
    364,575
    
    
    
    2,681
    
    
    
    2.95Advances from FHLB
    
    
    1,010,459
    
    
    
    13,007
    
    
    
    5.16
    
    
    
    1,615,310
    
    
    
    15,604
    
    
    
    3.87Secured borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    164,778
    
    
    
    2,483
    
    
    
    6.04Long-term debt
    
    
    36,665
    
    
    
    916
    
    
    
    10.02
    
    
    
    35,810
    
    
    
    578
    
    
    
    6.47Total interest bearing liabilities
    
    
    4,189,321
    
    
    
    32,775
    
    
    
    3.14
    
    
    
    4,856,422
    
    
    
    30,880
    
    
    
    2.55Demand deposits
    
    
    1,109,361
    
    
    
    
    
    
    
    
    
    
    
    982,332Non-interest bearing other liabilities
    
    
    51,442
    
    
    
    
    
    
    
    
    
    
    
    48,459Total Liabilities
    
    
    5,350,124
    
    
    
    
    
    
    
    
    
    
    
    5,887,213Stockholders equity
    
    
    555,237
    
    
    
    
    
    
    
    
    
    
    
    537,558Total liabilities and stockholders
equity
    
    $
    5,905,361
    
    
    
    
    
    
    
    
    
    
    $
    6,424,771Net tax equivalent interest income/
net interest spread
    
    
    
    
    
    $
    57,003
    
    
    
    3.44
    %
    
    
    
    
    
    $
    57,459
    
    
    
    3.29
    %Tax equivalent adjustment
    
    
    
    
    
    
    (2,035
    )
    
    
    
    
    
    
    
    
    
    
    (1,866
    )Capitalized interest from real
estate operations
    
    
    
    
    
    
    289
    
    
    
    
    
    
    
    
    
    
    
    438Net interest income
    
    
    
    
    
    
    55,257
    
    
    
    
    
    
    
    
    
    
    
    56,031MarginInterest income/interest earning assets
    
    
    
    
    
    
    
    
    
    
    6.58
    %
    
    
    
    
    
    
    
    
    
    
    5.84
    %Interest expense/interest earning assets
    
    
    
    
    
    
    
    
    
    
    2.41
    
    
    
    
    
    
    
    
    
    
    
    2.05Net interest margin (tax equivalent)
    
    
    
    
    
    
    
    
    
    
    4.17
    %
    
    
    
    
    
    
    
    
    
    
    3.79
    %Net interest margin (tax equivalent)
excluding secured borrowings
    
    
    
    
    
    
    
    
    
    
    4.17
    %
    
    
    
    
    
    
    
    
    
    
    3.90
    %
 
 (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 June 30, 2006 Compared to the Same 2005 Period:
      32




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Bank Operations Business Segment
 Average Balance Sheet  Yield / Rate Analysis
 For the Six Months EndedJune 30, 2006
    
    
    June 30, 2005Average
    
    
    Revenue/
    
    
    Yield/
    
    
    Average
    
    
    Revenue/
    
    
    Yield/Balance
    
    
    Expense
    
    
    Rate
    
    
    Balance
    
    
    Expense
    
    
    RateLoans:Residential real estate
    
    $
    2,045,381
    
    
    
    52,000
    
    
    
    5.08
    %
    
    $
    2,174,332
    
    
    
    53,106
    
    
    
    4.88
    %Commercial real estate
    
    
    1,518,882
    
    
    
    61,792
    
    
    
    8.14
    
    
    
    1,743,213
    
    
    
    58,621
    
    
    
    6.73Loan participations sold
    
    
    62,301
    
    
    
    2,401
    
    
    
    7.71
    
    
    
    168,152
    
    
    
    4,645
    
    
    
    5.52Consumer
    
    
    543,299
    
    
    
    19,652
    
    
    
    7.23
    
    
    
    496,591
    
    
    
    14,371
    
    
    
    5.79Lease financing
    
    
    319
    
    
    
    20
    
    
    
    12.54
    
    
    
    5,472
    
    
    
    298
    
    
    
    10.89Commercial business
    
    
    125,464
    
    
    
    5,485
    
    
    
    8.74
    
    
    
    90,007
    
    
    
    3,222
    
    
    
    7.16Small business
    
    
    248,442
    
    
    
    9,801
    
    
    
    7.89
    
    
    
    201,031
    
    
    
    7,279
    
    
    
    7.24Total loans
    
    
    4,544,088
    
    
    
    151,151
    
    
    
    6.65
    
    
    
    4,878,798
    
    
    
    141,542
    
    
    
    5.80Investments  tax exempt
    
    
    395,796
    
    
    
    11,548
    (1)
    
    
    5.84
    
    
    
    351,241
    
    
    
    10,158
    (1)
    
    
    5.78Investments  taxable
    
    
    585,535
    
    
    
    16,430
    
    
    
    5.61
    
    
    
    727,755
    
    
    
    19,075
    
    
    
    5.24Total interest earning assets
    
    
    5,525,419
    
    
    
    179,129
    
    
    
    6.48
    %
    
    
    5,957,794
    
    
    
    170,775
    
    
    
    5.73
    %Goodwill and core deposit intangibles
    
    
    78,496
    
    
    
    
    
    
    
    
    
    
    
    80,141Other non-interest earning assets
    
    
    361,343
    
    
    
    
    
    
    
    
    
    
    
    290,560Total Assets
    
    $
    5,965,258
    
    
    
    
    
    
    
    
    
    
    $
    6,328,495Deposits:Savings
    
    $
    348,125
    
    
    
    836
    
    
    
    0.48
    %
    
    $
    291,476
    
    
    
    399
    
    
    
    0.28
    %NOW
    
    
    762,590
    
    
    
    1,957
    
    
    
    0.52
    
    
    
    675,100
    
    
    
    1,324
    
    
    
    0.40Money market
    
    
    797,576
    
    
    
    7,958
    
    
    
    2.01
    
    
    
    913,907
    
    
    
    5,998
    
    
    
    1.32Certificate of deposit
    
    
    844,093
    
    
    
    15,855
    
    
    
    3.79
    
    
    
    779,858
    
    
    
    10,108
    
    
    
    2.61Total interest bearing deposits
    
    
    2,752,384
    
    
    
    26,606
    
    
    
    1.95
    
    
    
    2,660,341
    
    
    
    17,829
    
    
    
    1.35Short-term borrowed funds
    
    
    324,292
    
    
    
    7,644
    
    
    
    4.75
    
    
    
    360,832
    
    
    
    4,804
    
    
    
    2.68Advances from FHLB
    
    
    1,087,141
    
    
    
    27,146
    
    
    
    5.04
    
    
    
    1,576,090
    
    
    
    29,278
    
    
    
    3.75Secured borrowings
    
    
    62,301
    
    
    
    2,401
    
    
    
    7.77
    
    
    
    168,152
    
    
    
    4,645
    
    
    
    5.57Long-term debt
    
    
    37,238
    
    
    
    1,664
    
    
    
    9.01
    
    
    
    36,504
    
    
    
    1,178
    
    
    
    6.51Total interest bearing liabilities
    
    
    4,263,356
    
    
    
    65,461
    
    
    
    3.10
    
    
    
    4,801,919
    
    
    
    57,734
    
    
    
    2.42Demand deposits
    
    
    1,087,755
    
    
    
    
    
    
    
    
    
    
    
    948,214Non-interest bearing other liabilities
    
    
    60,831
    
    
    
    
    
    
    
    
    
    
    
    46,349Total Liabilities
    
    
    5,411,942
    
    
    
    
    
    
    
    
    
    
    
    5,796,482Stockholders equity
    
    
    553,316
    
    
    
    
    
    
    
    
    
    
    
    532,013Total liabilities and stockholders
equity
    
    $
    5,965,258
    
    
    
    
    
    
    
    
    
    
    $
    6,328,495Net tax equivalent interest income/
net interest spread
    
    
    
    
    
    $
    113,668
    
    
    
    3.39
    %
    
    
    
    
    
    $
    113,041
    
    
    
    3.31
    %Tax equivalent adjustment
    
    
    
    
    
    
    (4,042
    )
    
    
    
    
    
    
    
    
    
    
    (3,554
    )Capitalized interest from real estate
operations
    
    
    
    
    
    
    769
    
    
    
    
    
    
    
    
    
    
    
    889Net interest income
    
    
    
    
    
    
    110,395
    
    
    
    
    
    
    
    
    
    
    
    110,376MarginInterest income/interest earning assets
    
    
    
    
    
    
    
    
    
    
    6.48
    %
    
    
    
    
    
    
    
    
    
    
    5.73
    %Interest expense/interest earning assets
    
    
    
    
    
    
    
    
    
    
    2.39
    
    
    
    
    
    
    
    
    
    
    
    1.95Net interest margin (tax equivalent)
    
    
    
    
    
    
    
    
    
    
    4.09
    %
    
    
    
    
    
    
    
    
    
    
    3.78
    %Net interest margin (tax equivalent)
excluding secured borrowings
    
    
    
    
    
    
    
    
    
    
    4.14
    %
    
    
    
    
    
    
    
    
    
    
    3.89
    %
 
 (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
  Provision for Loan Losses
 For Three Months Ended
    
    
    For Six Months EndedJune 30,
    
    
    June 30,(in thousands)
    
    2006
    
    
    2005
    
    
    2006
    
    
    2005Balance, beginning of period
    
    $
    41,889
    
    
    $
    43,042
    
    
    $
    41,192
    
    
    $
    46,010Charge-offs:Consumer loans
    
    
    (12
    )
    
    
    (42
    )
    
    
    (157
    )
    
    
    (110
    )Residential real estate loans
    
    
    (60
    )
    
    
    (56
    )
    
    
    (128
    )
    
    
    (254
    )Small business
    
    
    (229
    )
    
    
    (467
    )
    
    
    (315
    )
    
    
    (595
    )Continuing loan products
    
    
    (301
    )
    
    
    (565
    )
    
    
    (600
    )
    
    
    (959
    )Discontinued loan products
    
    
    (49
    )
    
    
    (511
    )
    
    
    (116
    )
    
    
    (835
    )Total charge-offs
    
    
    (350
    )
    
    
    (1,076
    )
    
    
    (716
    )
    
    
    (1,794
    )Recoveries:Commercial business loans
    
    
    160
    
    
    
    121
    
    
    
    280
    
    
    
    1,231Commercial real estate loans
    
    
    
    
    
    
    6
    
    
    
    10
    
    
    
    6Small business
    
    
    119
    
    
    
    219
    
    
    
    258
    
    
    
    404Consumer loans
    
    
    33
    
    
    
    39
    
    
    
    114
    
    
    
    83Residential real estate loans
    
    
    
    
    
    
    
    
    
    
    178
    
    
    
    1Continuing loan products
    
    
    312
    
    
    
    385
    
    
    
    840
    
    
    
    1,725Discontinued loan products
    
    
    181
    
    
    
    479
    
    
    
    553
    
    
    
    805Total recoveries
    
    
    493
    
    
    
    864
    
    
    
    1,393
    
    
    
    2,530Net (charge-offs) recoveries
    
    
    143
    
    
    
    (212
    )
    
    
    677
    
    
    
    736Provision for (recovery from)
loan losses
    
    
    (20
    )
    
    
    820
    
    
    
    143
    
    
    
    (3,096
    )Balance, end of period
    
    $
    42,012
    
    
    $
    43,650
    
    
    $
    42,012
    
    
    $
    43,650
     34




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  June 30,
    
    
    December 31,
    
    
    June 30,2006
    
    
    2005
    
    
    2005NONPERFORMING ASSETSNonaccrual:Tax certificates
    
    $
    857
    
    
    $
    388
    
    
    $
    562Loans
    
    
    5,349
    
    
    
    6,801
    
    
    
    5,785Total nonaccrual
    
    
    6,206
    
    
    
    7,189
    
    
    
    6,347Repossessed assets:Real estate owned
    
    
    1,907
    
    
    
    967
    
    
    
    1,178Other
    
    
    
    
    
    
    
    
    
    
    328Total nonperforming assets, net
    
    $
    8,113
    
    
    $
    8,156
    
    
    $
    7,853AllowancesAllowance for loan losses
    
    $
    42,012
    
    
    $
    41,192
    
    
    $
    43,650Allowance for tax certificate losses
    
    
    3,511
    
    
    
    3,271
    
    
    
    3,553Total allowances
    
    $
    45,523
    
    
    $
    44,463
    
    
    $
    47,203Contractually past due 90 days or
more
    
    $
    
    
    
    $
    
    
    
    $
    Performing impaired loans, net
    
    
    178
    
    
    
    193
    
    
    
    216Restructured loans
    
    
    2
    
    
    
    77
    
    
    
    85TOTAL
    
    $
    180
    
    
    $
    270
    
    
    $
    301
  BankAtlantics Non-Interest Income
 For Three Months
    
    
    For Six MonthsEnded June 30,
    
    
    Ended June 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeOther service charges and fees
    
    $
    7,353
    
    
    $
    5,849
    
    
    $
    1,504
    
    
    $
    13,575
    
    
    $
    11,087
    
    
    $
    2,488Service charges on deposits
    
    
    21,274
    
    
    
    14,744
    
    
    
    6,530
    
    
    
    40,373
    
    
    
    27,733
    
    
    
    12,640Income (loss) from
real estate operations
    
    
    114
    
    
    
    1,655
    
    
    
    (1,541
    )
    
    
    (982
    )
    
    
    3,896
    
    
    
    (4,878
    )Securities activities, net
    
    
    458
    
    
    
    87
    
    
    
    371
    
    
    
    457
    
    
    
    94
    
    
    
    363Gain associated with
debt redemption
    
    
    1,092
    
    
    
    
    
    
    
    1,092
    
    
    
    1,528
    
    
    
    
    
    
    
    1,528Gain on sales of office
properties
and equipment, net
    
    
    1,806
    
    
    
    293
    
    
    
    1,513
    
    
    
    1,778
    
    
    
    293
    
    
    
    1,485Other
    
    
    2,863
    
    
    
    2,337
    
    
    
    526
    
    
    
    5,238
    
    
    
    5,403
    
    
    
    (165
    )Non-interest income
    
    $
    34,960
    
    
    $
    24,965
    
    
    $
    9,995
    
    
    $
    61,967
    
    
    $
    48,506
    
    
    $
    13,461
  35




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
        36




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 BankAtlantics Non-Interest Expense
 For Three Months
    
    
    For Six MonthsEnded June 30,
    
    
    Ended June 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeEmployee compensation and
benefits
    
    $
    36,517
    
    
    $
    27,577
    
    
    $
    8,940
    
    
    $
    70,874
    
    
    $
    53,975
    
    
    $
    16,899Occupancy and equipment
    
    
    13,584
    
    
    
    10,165
    
    
    
    3,419
    
    
    
    25,956
    
    
    
    19,282
    
    
    
    6,674Advertising and promotion
    
    
    7,123
    
    
    
    5,965
    
    
    
    1,158
    
    
    
    15,419
    
    
    
    11,133
    
    
    
    4,286Amortization of intangible assets
    
    
    387
    
    
    
    401
    
    
    
    (14
    )
    
    
    788
    
    
    
    826
    
    
    
    (38
    )Cost associated with debt
redemption
    
    
    1,034
    
    
    
    
    
    
    
    1,034
    
    
    
    1,457
    
    
    
    
    
    
    
    1,457Professional fees
    
    
    2,020
    
    
    
    2,638
    
    
    
    (618
    )
    
    
    4,213
    
    
    
    4,533
    
    
    
    (320
    )Impairment of office
properties and equipment
    
    
    
    
    
    
    3,706
    
    
    
    (3,706
    )
    
    
    
    
    
    
    3,706
    
    
    
    (3,706
    )Check losses
    
    
    1,875
    
    
    
    545
    
    
    
    1,330
    
    
    
    3,121
    
    
    
    1,115
    
    
    
    2,006Other
    
    
    9,644
    
    
    
    7,319
    
    
    
    2,325
    
    
    
    17,739
    
    
    
    14,010
    
    
    
    3,729Non-interest expense
    
    $
    72,184
    
    
    $
    58,316
    
    
    $
    13,868
    
    
    $
    139,567
    
    
    $
    108,580
    
    
    $
    30,987
  .
    37




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
     For the Three Months Ended June 30,
    
    
    For the Six Months Ended June 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeIncome before
income taxes
    
    $
    18,053
    
    
    $
    21,860
    
    
    $
    (3,807
    )
    
    $
    32,653
    
    
    $
    53,398
    
    
    $
    (20,745
    )Provision for
income taxes
    
    
    5,301
    
    
    
    7,089
    
    
    
    (1,788
    )
    
    
    9,483
    
    
    
    17,766
    
    
    
    (8,283
    )BankAtlantic net
income
    
    $
    12,752
    
    
    $
    14,771
    
    
    $
    (2,019
    )
    
    $
    23,170
    
    
    $
    35,632
    
    
    $
    (12,462
    )Effective tax rate
    
    
    29.36
    %
    
    
    32.43
    %
    
    
    -3.07
    %
    
    
    29.04
    %
    
    
    33.27
    %
    
    
    -4.23
    %
  38




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Ryan Beck Holdings, Inc. Results of Operations
 For the Three Months
    
    
    For the Six MonthsEnded June 30,
    
    
    Ended June 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeNet interest income:Broker dealer interest
and dividends
    
    $
    3,991
    
    
    $
    3,489
    
    
    $
    502
    
    
    $
    8,229
    
    
    $
    6,436
    
    
    $
    1,793Interest expense
    
    
    (1,514
    )
    
    
    (968
    )
    
    
    (546
    )
    
    
    (3,135
    )
    
    
    (1,470
    )
    
    
    (1,665
    )Net interest income
    
    
    2,477
    
    
    
    2,521
    
    
    
    (44
    )
    
    
    5,094
    
    
    
    4,966
    
    
    
    128Non-interest income:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Principal transactions
    
    
    23,368
    
    
    
    36,690
    
    
    
    (13,322
    )
    
    
    48,088
    
    
    
    56,492
    
    
    
    (8,404
    )Investment banking
    
    
    3,317
    
    
    
    25,394
    
    
    
    (22,077
    )
    
    
    7,019
    
    
    
    37,276
    
    
    
    (30,257
    )Commissions
    
    
    21,869
    
    
    
    19,478
    
    
    
    2,391
    
    
    
    44,797
    
    
    
    39,793
    
    
    
    5,004Other
    
    
    2,827
    
    
    
    2,353
    
    
    
    474
    
    
    
    6,039
    
    
    
    5,040
    
    
    
    999Non-interest income
    
    
    51,381
    
    
    
    83,915
    
    
    
    (32,534
    )
    
    
    105,943
    
    
    
    138,601
    
    
    
    (32,658
    )Non-interest expense:Employee compensation
and benefits
    
    
    42,433
    
    
    
    49,766
    
    
    
    (7,333
    )
    
    
    86,788
    
    
    
    88,203
    
    
    
    (1,415
    )Occupancy and
equipment
    
    
    3,927
    
    
    
    3,786
    
    
    
    141
    
    
    
    7,798
    
    
    
    7,904
    
    
    
    (106
    )Advertising and
promotion
    
    
    1,326
    
    
    
    1,940
    
    
    
    (614
    )
    
    
    2,893
    
    
    
    3,013
    
    
    
    (120
    )Professional fees
    
    
    1,905
    
    
    
    1,591
    
    
    
    314
    
    
    
    3,856
    
    
    
    3,008
    
    
    
    848Communications
    
    
    3,930
    
    
    
    3,508
    
    
    
    422
    
    
    
    7,884
    
    
    
    6,713
    
    
    
    1,171Floor broker and
clearing fees
    
    
    2,142
    
    
    
    2,012
    
    
    
    130
    
    
    
    4,861
    
    
    
    4,380
    
    
    
    481Other
    
    
    2,086
    
    
    
    1,825
    
    
    
    261
    
    
    
    4,004
    
    
    
    3,772
    
    
    
    232Non-interest expense
    
    
    57,749
    
    
    
    64,428
    
    
    
    (6,679
    )
    
    
    118,084
    
    
    
    116,993
    
    
    
    1,091Income (loss) before
income taxes
    
    
    (3,891
    )
    
    
    22,008
    
    
    
    (25,899
    )
    
    
    (7,047
    )
    
    
    26,574
    
    
    
    (33,621
    )Income taxes
    
    
    (1,524
    )
    
    
    8,977
    
    
    
    (10,501
    )
    
    
    (3,115
    )
    
    
    11,013
    
    
    
    (14,128
    )Net (loss) income
    
    $
    (2,367
    )
    
    $
    13,031
    
    
    $
    (15,398
    )
    
    $
    (3,932
    )
    
    $
    15,561
    
    
    $
    (19,493
    )Effective tax rate
    
    
    39.17
    %
    
    
    40.79
    %
    
    
    -1.62
    %
    
    
    44.20
    %
    
    
    41.44
    %
    
    
    2.76
    %
 For the Three and Six Months Ended June 30, 2006 Compared to the Same 2005 Period:
    39




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BankAtlantic Bancorp, Inc. and Subsidiaries
         40




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BankAtlantic Bancorp, Inc. and Subsidiaries
 Parent Company Results of Operations
 For the Three Months
    
    
    For the Six MonthsEnded June 30,
    
    
    Ended June 30,(in thousands)
    
    2006
    
    
    2005
    
    
    Change
    
    
    2006
    
    
    2005
    
    
    ChangeNet interest income:Interest and dividend
income
    
    $
    662
    
    
    $
    613
    
    
    $
    49
    
    
    $
    1,259
    
    
    $
    1,291
    
    
    $
    (32
    )Interest expense
    
    
    (5,460
    )
    
    
    (4,770
    )
    
    
    (690
    )
    
    
    (10,675
    )
    
    
    (9,340
    )
    
    
    (1,335
    )Net interest expense
    
    
    (4,798
    )
    
    
    (4,157
    )
    
    
    (641
    )
    
    
    (9,416
    )
    
    
    (8,049
    )
    
    
    (1,367
    )Non-interest income:Income from unconsolidated
subsidiaries
    
    
    278
    
    
    
    137
    
    
    
    141
    
    
    
    1,098
    
    
    
    268
    
    
    
    830Securities activities, net
    
    
    2,372
    
    
    
    
    
    
    
    2,372
    
    
    
    4,913
    
    
    
    
    
    
    
    4,913Other
    
    
    
    
    
    
    205
    
    
    
    (205
    )
    
    
    
    
    
    
    606
    
    
    
    (606
    )Non-interest income
    
    
    2,650
    
    
    
    342
    
    
    
    2,308
    
    
    
    6,011
    
    
    
    874
    
    
    
    5,137Non-interest expense:Employee compensation
and benefits
    
    
    1,061
    
    
    
    1,048
    
    
    
    13
    
    
    
    2,548
    
    
    
    2,008
    
    
    
    540Professional fees
    
    
    264
    
    
    
    106
    
    
    
    158
    
    
    
    370
    
    
    
    965
    
    
    
    (595
    )Other
    
    
    492
    
    
    
    264
    
    
    
    228
    
    
    
    857
    
    
    
    490
    
    
    
    367Non-interest expense
    
    
    1,817
    
    
    
    1,418
    
    
    
    399
    
    
    
    3,775
    
    
    
    3,463
    
    
    
    312Loss before income taxes
    
    
    (3,965
    )
    
    
    (5,233
    )
    
    
    1,268
    
    
    
    (7,180
    )
    
    
    (10,638
    )
    
    
    3,458Income taxes
    
    
    (1,702
    )
    
    
    (1,968
    )
    
    
    266
    
    
    
    (2,776
    )
    
    
    (3,860
    )
    
    
    1,084Net loss
    
    $
    (2,263
    )
    
    $
    (3,265
    )
    
    $
    1,002
    
    
    $
    (4,404
    )
    
    $
    (6,778
    )
    
    $
    2,374
        41




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BankAtlantic Bancorp, Inc. and Subsidiaries
      42




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BankAtlantic Bancorp, Inc. and Subsidiaries
 BankAtlantic Bancorp Consolidated Financial Condition
  
    
    Decrease 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;
    
    Lower investment in FHLB stock related to repayments of FHLB advances;
    
    Decline in loan receivable balances associated with 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 instead of secured borrowings
as a result of managements decision to amend the related participation agreements;
    
    Increase in accrued interest receivable resulting from higher rates on earning assets
during the period partially offset by lower earning asset balances;
    
    Decline in investment in unconsolidated subsidiaries due to a capital distribution
from an investment in a rental real estate joint venture partially offset by a $4.1
million investment in another rental real estate joint venture during the first quarter
of 2006;
    
    Increase in office properties and equipment associated with BankAtlantics branch expansion initiatives;
    
    Increase in deferred tax asset primarily resulting from a decline in other comprehensive income; and
    
    Increase in other assets from higher accrued revenues at Ryan Beck as well as higher
prepaid expenses and leasehold improvement allowances.
  
    
    Higher deposit account balances resulting from growth in low-cost deposits;
    
    Decrease in FHLB advances balances reflecting redemptions of long term advances as
part of a strategy to reduce asset sensitivity in our net interest margin;
    
    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 sold agreements to qualify as loan sales
instead of secured borrowing arrangements;
    
    Increase in short-term borrowings to fund redemptions of FHLB advances and the
purchase of tax certificates;
    
    Increase in securities sold but not yet purchased and due to clearing agents relating
to Ryan Becks trading activities;
    
    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
AML/BSA compliance matters based on payment of that amount.
  Liquidity and Capital Resources
 BankAtlantic Bancorp, Inc. Liquidity and Capital Resources
  43




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




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BankAtlantic Bancorp, Inc. and Subsidiaries
     45




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BankAtlantic Bancorp, Inc. and Subsidiaries
   Minimum RatiosAdequately
    
    
    WellActual
    
    
    Capitalized
    
    
    CapitalizedAmount
    
    
    Ratio
    
    
    Ratio
    
    
    RatioAt June 30, 2006:Total risk-based capital
    
    $
    528,582
    
    
    
    12.28
    %
    
    
    8.00
    %
    
    
    10.00
    %Tier 1 risk-based
capital
    
    $
    461,237
    
    
    
    10.71
    %
    
    
    4.00
    %
    
    
    6.00
    %Tangible capital
    
    $
    461,237
    
    
    
    7.74
    %
    
    
    1.50
    %
    
    
    1.50
    %Core capital
    
    $
    461,237
    
    
    
    7.74
    %
    
    
    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
    %
  Ryan Beck & Co., Inc. Liquidity and Capital Resources
      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 June 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
    
    $
    85,245
    
    
    
    147,259
    
    
    
    127,506
    
    
    
    339,677
    
    
    
    699,687Hybrids ARM less than 5 years
    
    
    212,869
    
    
    
    157,584
    
    
    
    47,867
    
    
    
    1,091
    
    
    
    419,411Hybrids ARM more than 5 years
    
    
    182,166
    
    
    
    239,567
    
    
    
    221,690
    
    
    
    284,807
    
    
    
    928,230Commercial loans
    
    
    1,461,712
    
    
    
    111,089
    
    
    
    79,005
    
    
    
    15,034
    
    
    
    1,666,840Small business loans
    
    
    160,603
    
    
    
    73,778
    
    
    
    24,677
    
    
    
    10,386
    
    
    
    269,444Consumer
    
    
    516,649
    
    
    
    5,196
    
    
    
    4,218
    
    
    
    17,101
    
    
    
    543,164Total loans
    
    
    2,619,244
    
    
    
    734,473
    
    
    
    504,963
    
    
    
    668,096
    
    
    
    4,526,776Investment securitiesTax exempt securities
    
    
    
    
    
    
    5,404
    
    
    
    23,028
    
    
    
    369,924
    
    
    
    398,356Taxable investment securities
    
    
    224,330
    
    
    
    80,403
    
    
    
    63,924
    
    
    
    66,820
    
    
    
    435,477Tax certificates
    
    
    208,042
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    208,042Total investment securities
    
    
    432,372
    
    
    
    85,807
    
    
    
    86,952
    
    
    
    436,744
    
    
    
    1,041,875Total interest earning assets
    
    
    3,051,616
    
    
    
    820,280
    
    
    
    591,915
    
    
    
    1,104,840
    
    
    
    5,568,651Total non-earning assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    479,745
    
    
    
    479,745Total assets
    
    $
    3,051,616
    
    
    
    820,280
    
    
    
    591,915
    
    
    
    1,584,585
    
    
    
    6,048,396Total interest bearing liabilities
    
    $
    3,143,617
    
    
    
    398,501
    
    
    
    282,872
    
    
    
    1,605,029
    
    
    
    5,430,019Non-interest bearing liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    618,377
    
    
    
    618,377Total non-interest bearing liabilities
and equity
    
    $
    3,143,617
    
    
    
    398,501
    
    
    
    282,872
    
    
    
    2,223,406
    
    
    
    6,048,396GAP (repricing difference)
    
    $
    (92,001
    )
    
    
    421,779
    
    
    
    309,043
    
    
    
    (500,189
    )Cumulative GAP
    
    $
    (92,001
    )
    
    
    329,778
    
    
    
    638,821
    
    
    
    138,632Repricing Percentage
    
    
    -1.52
    %
    
    
    6.97
    %
    
    
    5.11
    %
    
    
    -8.27
    %Cumulative Percentage
    
    
    -1.52
    %
    
    
    5.45
    %
    
    
    10.56
    %
    
    
    2.29
    %
    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 June 30, 2006NetChanges
    
    Interest
    
    
    Percentin Rate
    
    Income
    
    
    Change+200 bp
    
    $
    250,501
    
    
    -2.92%+100 bp
    
    $
    257,152
    
    
    -0.34%0
    
    $
    258,041
    
    
    0.00%-100 bp
    
    $
    257,936
    
    
    -0.04%-200 bp
    
    $
    253,124
    
    
    -1.91%
  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%
    
    $
    111,223
    
    
    $
    18,53710%
    
    $
    101,955
    
    
    $
    9,2690%
    
    $
    92,686
    
    
    $
    -10%
    
    $
    83,417
    
    
    $
    (9,269
    )-20%
    
    $
    74,149
    
    
    $
    (18,537
    )
  Ryan Beck Market Risk
     High
    
    
    Low
    
    
    AverageVaR
    
    $
    415,528
    
    
    $
    94,069
    
    
    $
    214,023Aggregate Long Value
    
    
    202,976
    
    
    
    90,909
    
    
    
    148,846Aggregate Short Value
    
    $
    148,920
    
    
    $
    35,063
    
    
    $
    82,821
 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



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 (1)
    
    
    ProgramsApril 1, 2006
through
April 30, 2006
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    May 1, 2006 through
May 31, 2006
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    June 1, 2006 through
June 30, 2006
    
    
    250,000
    
    
    
    14.50
    
    
    
    250,000
    
    
    
    5,750,000Total
    
    
    250,000
    
    
    $
    14.50
    
    
    
    250,000
    
    
    
    5,750,000
 1.
    
    On May 2, 2006, the Board of Directors 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.
 
 Item 4. Submission of Matters to a Vote of Security Holders
  Director
    
    For
    
    
    WithheldJohn E. Abdo
    
    
    96,558,955
    
    
    
    3,885,887David A. Lieberman
    
    
    98,288,919
    
    
    
    2,155,923Charlie C. Winningham II
    
    
    97,203,984
    
    
    
    3,240,859
  Votes
    
    
    Votes
    
    
    Votes
    
    
    BrokerFor
    
    
    Against
    
    
    Abstaining
    
    
    Non-VoteRestricted Stock
and Option Plan
    
    
    89,601,695
    
    
    
    1,031,426
    
    
    
    309,423
    
    
    
    9,502,299
 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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BankAtlantic Bancorp, Inc. and Subsidiaries
 
 Signatures
  BANKATLANTIC BANCORP, INC.August 9, 2006
    
    By:
    
    /s/ Alan B. LevanDate
    
    
    
    Alan B. Levan
Chief Executive Officer/
Chairman/PresidentAugust 9, 2006
    
    By:
    
    /s/ James A. WhiteDate
    
    
    
    James A. White
Executive Vice President,
Chief Financial Officer
 53