##### Table of Contents



SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2005
 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
(State or other jurisdiction of
incorporation or organization)
    
    65-0507804
(I.R.S. Employer
Identification No.)2100 West Cypress Creek Road
Fort Lauderdale, Florida
(Address of principal executive offices)
    
    33309
(Zip Code)
 (954) 940-5000
 Not Applicable
  þ o
  þ o
  o þ
  Outstanding atTitle of Each Class
    
    November 2, 2005Class A Common Stock, par value $0.01 per share
    
    
    55,867,823Class 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
    
    
    1-22Consolidated Statements of Financial Condition  September 30, 2005 and 2004 and December 31, 2004  - Unaudited
    
    
    4Consolidated Statements of Operations - For the Three and Nine Months Ended September 30, 2005 and 2004 - Unaudited
    
    
    5-6Consolidated Statements of Stockholders' Equity and Comprehensive Income  For the Nine Months Ended September 30, 2005 and 2004 - Unaudited
    
    
    7Consolidated Statements of Cash Flows - For the Nine Months Ended September 30, 2005 and 2004 - Unaudited
    
    
    8-9Notes to Consolidated Financial Statements - Unaudited
    
    
    10-22Item 2.
    
    Management's Discussion and Analysis of Financial Condition and Results of Operations
    
    
    23-39Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    40-42Item 4.
    
    Controls and Procedures
    
    
    43Part II. OTHER INFORMATIONItem 2.
    
    Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities
    
    
    44Item 6.
    
    Exhibits
    
    
    44Signatures
    
    
    45Section 302 Chief Executive Officer CertificationSection 302 Chief Financial Officer CertificationSection 906 Chief Executive Officer CertificationSection 906 Chief Financial Officer Certification




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION   UNAUDITED
 September 30,
    
    
    December 31,
    
    
    September 30,(in thousands, except share data)
    
    2005
    
    
    2004
    
    
    2004ASSETSCash and due from depository institutions
    
    $
    140,346
    
    
    $
    118,967
    
    
    $
    119,606Federal funds sold and other short-term investments
    
    
    11,802
    
    
    
    16,093
    
    
    
    26,015Securities owned (at fair value)
    
    
    120,298
    
    
    
    125,443
    
    
    
    111,944Securities available for sale (at fair value)
    
    
    702,176
    
    
    
    747,160
    
    
    
    679,644Investment securities and tax certificates (approximate fair
value: $366,456, $306,963 and $159,944)
    
    
    366,884
    
    
    
    307,438
    
    
    
    159,944Federal Home Loan Bank stock, at cost which approximates
fair value
    
    
    78,931
    
    
    
    78,619
    
    
    
    62,425Loans receivable, net of allowance for loan losses of
$40,695, $46,010 and $48,778
    
    
    4,543,245
    
    
    
    4,599,048
    
    
    
    4,176,571Accrued interest receivable
    
    
    39,766
    
    
    
    35,982
    
    
    
    30,126Real estate held for development and sale
    
    
    24,493
    
    
    
    27,692
    
    
    
    25,521Investments in unconsolidated subsidiaries
    
    
    12,510
    
    
    
    7,910
    
    
    
    7,910Office properties and equipment, net
    
    
    140,466
    
    
    
    129,790
    
    
    
    115,809Deferred tax asset, net
    
    
    25,591
    
    
    
    20,269
    
    
    
    18,413Goodwill
    
    
    76,674
    
    
    
    76,674
    
    
    
    76,674Core deposit intangible asset
    
    
    8,796
    
    
    
    10,270
    
    
    
    10,695Due from clearing agent
    
    
    15,650
    
    
    
    16,619
    
    
    
    14,478Other assets
    
    
    45,194
    
    
    
    38,803
    
    
    
    42,837Total assets
    
    $
    6,352,822
    
    
    $
    6,356,777
    
    
    $
    5,678,612LIABILITIES AND STOCKHOLDERS EQUITYLiabilities:DepositsDemand
    
    $
    1,017,071
    
    
    $
    890,398
    
    
    $
    781,916NOW
    
    
    673,803
    
    
    
    658,137
    
    
    
    590,051Savings
    
    
    303,348
    
    
    
    270,001
    
    
    
    252,408Money market
    
    
    921,585
    
    
    
    875,422
    
    
    
    893,315Certificates of deposit
    
    
    777,743
    
    
    
    763,244
    
    
    
    724,601Total deposits
    
    
    3,693,550
    
    
    
    3,457,202
    
    
    
    3,242,291Advances from FHLB
    
    
    1,485,649
    
    
    
    1,544,497
    
    
    
    1,249,112Securities sold under agreements to repurchase
    
    
    147,966
    
    
    
    296,643
    
    
    
    200,550Federal funds purchased
    
    
    28,042
    
    
    
    105,000
    
    
    
    86,300Subordinated debentures, notes and bonds payable
    
    
    40,702
    
    
    
    37,741
    
    
    
    36,780Junior subordinated debentures
    
    
    263,266
    
    
    
    263,266
    
    
    
    263,266Securities sold but not yet purchased
    
    
    20,688
    
    
    
    39,462
    
    
    
    31,760Other liabilities
    
    
    149,567
    
    
    
    143,701
    
    
    
    109,064Total liabilities
    
    
    5,829,430
    
    
    
    5,887,512
    
    
    
    5,219,123Stockholders 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 55,862,486,
55,214,225 and 54,997,960 shares
    
    
    559
    
    
    
    552
    
    
    
    550Class 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
    
    
    261,587
    
    
    
    259,702
    
    
    
    258,980Unearned compensation  restricted stock grants
    
    
    (1,021
    )
    
    
    (1,001
    )
    
    
    (1,046
    )Retained earnings
    
    
    265,082
    
    
    
    210,955
    
    
    
    195,765Total stockholders equity before accumulated
other comprehensive income (loss)
    
    
    526,256
    
    
    
    470,257
    
    
    
    454,298Accumulated other comprehensive income (loss)
    
    
    (2,864
    )
    
    
    (992
    )
    
    
    5,191Total stockholders equity
    
    
    523,392
    
    
    
    469,265
    
    
    
    459,489Total liabilities and stockholders equity
    
    $
    6,352,822
    
    
    $
    6,356,777
    
    
    $
    5,678,612
  4




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF OPERATIONS  UNAUDITED
 (in thousands, except share and per share data)
    
    For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Interest income:Interest and fees on loans
    
    $
    73,110
    
    
    $
    52,661
    
    
    $
    210,564
    
    
    $
    149,631Interest and dividends on securities available
for sale
    
    
    4,741
    
    
    
    4,974
    
    
    
    15,294
    
    
    
    13,178Interest on tax exempt securities
    
    
    3,733
    
    
    
    1,329
    
    
    
    10,727
    
    
    
    1,972Interest on other investment securities
    
    
    4,952
    
    
    
    4,560
    
    
    
    13,759
    
    
    
    12,817Broker dealer interest
    
    
    3,756
    
    
    
    2,849
    
    
    
    10,192
    
    
    
    8,511Total interest income
    
    
    90,292
    
    
    
    66,373
    
    
    
    260,536
    
    
    
    186,109Interest expense:Interest on deposits
    
    
    10,519
    
    
    
    7,060
    
    
    
    28,348
    
    
    
    20,821Interest on advances from FHLB
    
    
    17,332
    
    
    
    9,364
    
    
    
    46,610
    
    
    
    26,231Interest on securities sold under agreements to
repurchase and federal funds purchased
    
    
    2,108
    
    
    
    953
    
    
    
    6,853
    
    
    
    1,835Interest on subordinated debentures, notes and
bonds payable, and junior subordinated
debentures
    
    
    6,392
    
    
    
    5,034
    
    
    
    18,380
    
    
    
    14,773Capitalized interest on real estate development
    
    
    (477
    )
    
    
    (355
    )
    
    
    (1,366
    )
    
    
    (1,008
    )Total interest expense
    
    
    35,874
    
    
    
    22,056
    
    
    
    98,825
    
    
    
    62,652Net interest income
    
    
    54,418
    
    
    
    44,317
    
    
    
    161,711
    
    
    
    123,457Provision for (recovery from) loan losses
    
    
    (3,410
    )
    
    
    1,717
    
    
    
    (6,506
    )
    
    
    (1,105
    )Net interest income after provision for
(recovery
from) loan losses
    
    
    57,828
    
    
    
    42,600
    
    
    
    168,217
    
    
    
    124,562Non-interest income:Broker/dealer revenue
    
    
    50,368
    
    
    
    52,670
    
    
    
    188,969
    
    
    
    178,743Service charges on deposits
    
    
    16,415
    
    
    
    13,493
    
    
    
    44,148
    
    
    
    37,798Other service charges and fees
    
    
    5,824
    
    
    
    5,819
    
    
    
    16,911
    
    
    
    16,887Income from real estate operations
    
    
    1,142
    
    
    
    900
    
    
    
    5,038
    
    
    
    1,888Equity earnings of unconsolidated subsidiaries
    
    
    142
    
    
    
    123
    
    
    
    410
    
    
    
    359Securities activities, net
    
    
    181
    
    
    
    2
    
    
    
    373
    
    
    
    77Litigation settlement
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,840Other
    
    
    2,432
    
    
    
    2,167
    
    
    
    8,528
    
    
    
    6,292Total non-interest income
    
    
    76,504
    
    
    
    75,174
    
    
    
    264,377
    
    
    
    264,884Non-interest expense:Employee compensation and benefits
    
    
    68,455
    
    
    
    58,992
    
    
    
    212,641
    
    
    
    189,710Occupancy and equipment
    
    
    14,853
    
    
    
    11,782
    
    
    
    42,043
    
    
    
    33,393Impairment of office properties and equipment
    
    
    
    
    
    
    
    
    
    
    3,706
    
    
    
    Amortization of intangible assets
    
    
    
    
    
    
    425
    
    
    
    
    
    
    
    1,289Advertising and promotion
    
    
    6,667
    
    
    
    4,757
    
    
    
    21,034
    
    
    
    15,081Cost associated with debt redemption
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,741Professional fees
    
    
    4,207
    
    
    
    4,736
    
    
    
    12,604
    
    
    
    10,962Communications
    
    
    3,371
    
    
    
    3,182
    
    
    
    10,084
    
    
    
    9,226Floor broker and clearing fees
    
    
    2,305
    
    
    
    2,143
    
    
    
    6,685
    
    
    
    7,383Other
    
    
    11,326
    
    
    
    8,600
    
    
    
    31,315
    
    
    
    25,748Total non-interest expense
    
    
    111,184
    
    
    
    94,617
    
    
    
    340,112
    
    
    
    304,533Income before income taxes
    
    
    23,148
    
    
    
    23,157
    
    
    
    92,482
    
    
    
    84,913Provision for income taxes
    
    
    6,888
    
    
    
    8,466
    
    
    
    31,807
    
    
    
    31,438Net income
    
    $
    16,260
    
    
    $
    14,691
    
    
    $
    60,675
    
    
    $
    53,475
  5




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS  UNAUDITED
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Earnings per shareBasic earnings per share
    
    $
    0.27
    
    
    $
    0.25
    
    
    $
    1.01
    
    
    $
    0.90Diluted earnings per share
    
    $
    0.26
    
    
    $
    0.23
    
    
    $
    0.95
    
    
    $
    0.84Basic weighted average number
of common shares outstanding
    
    
    60,555,158
    
    
    
    59,687,354
    
    
    
    60,361,595
    
    
    
    59,430,463Diluted weighted average number
of common and common
equivalent shares outstanding
    
    
    63,193,131
    
    
    
    63,109,757
    
    
    
    63,175,886
    
    
    
    63,026,141Cash dividends per shareCash dividends per Class A share
    
    $
    0.038
    
    
    $
    0.035
    
    
    $
    0.108
    
    
    $
    0.101Cash dividends per Class B share
    
    $
    0.038
    
    
    $
    0.035
    
    
    $
    0.108
    
    
    $
    0.101
  6




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##### Table of Contents



BANKATLANTIC BANCORP, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2005  UNAUDITED
 Accumul-Unearned
    
    
    atedCompen-
    
    
    OtherCompre-
    
    
    
    
    
    
    Addi-
    
    
    
    
    
    
    sation
    
    
    Compre-hensive
    
    
    
    
    
    
    tional
    
    
    
    
    
    
    Restricted
    
    
    hensiveIncome
    
    
    Common
    
    
    Paid-in
    
    
    Retained
    
    
    Stock
    
    
    Income(in thousands)
    
    (Loss)
    
    
    Stock
    
    
    Capital
    
    
    Earnings
    
    
    Grants
    
    
    (Loss)
    
    
    TotalBALANCE, DECEMBER 31, 2003
    
    
    
    
    
    $
    593
    
    
    $
    259,770
    
    
    $
    148,311
    
    
    $
    (1,178
    )
    
    $
    5,956
    
    
    $
    413,452Net income
    
    $
    53,475
    
    
    
    
    
    
    
    
    
    
    
    53,475
    
    
    
    
    
    
    
    
    
    
    
    53,475Other comprehensive income (loss), net of tax:Unrealized losses on securities available for sale
(less income tax benefit of $442)
    
    
    (716
    )Reclassification adjustment for net gain included
in net income (less income tax expense of $28)
    
    
    (49
    )Other comprehensive income (loss)
    
    
    (765
    )Comprehensive income
    
    $
    52,710Dividends on Class A common Stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,528
    )
    
    
    
    
    
    
    
    
    
    
    (5,528
    )Dividends on Class B common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (493
    )
    
    
    
    
    
    
    
    
    
    
    (493
    )Issuance of Class A common stock
    
    
    
    
    
    
    12
    
    
    
    3,054
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,066Tax effect relating to share-based
compensation
    
    
    
    
    
    
    
    
    
    
    4,924
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,924Retirement of Class A common stock relating
to exercise of stock options
    
    
    
    
    
    
    (2
    )
    
    
    (2,714
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,716
    )Retirement of Class A common stock
    
    
    
    
    
    
    (4
    )
    
    
    (6,054
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,058
    )Amortization of unearned
compensation   restricted stock grants
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    132
    
    
    
    
    
    
    
    132Net change in accumulated other comprehensive
income, net of income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (765
    )
    
    
    (765
    )BALANCE, SEPTEMBER 30, 2004
    
    
    
    
    
    $
    599
    
    
    $
    258,980
    
    
    $
    195,765
    
    
    $
    (1,046
    )
    
    $
    5,191
    
    
    $
    459,489BALANCE, DECEMBER 31, 2004
    
    
    
    
    
    $
    601
    
    
    $
    259,702
    
    
    $
    210,955
    
    
    $
    (1,001
    )
    
    $
    (992
    )
    
    $
    469,265Net income
    
    $
    60,675
    
    
    
    
    
    
    
    
    
    
    
    60,675
    
    
    
    
    
    
    
    
    
    
    
    60,675Other comprehensive income (loss), net of tax:Unrealized losses on securities available for sale
(less income tax benefit of $1,104)
    
    
    (1,633
    )Reclassification adjustment for net gain
included in net income (less income tax
expense of $134)
    
    
    (239
    )Other comprehensive income (loss)
    
    
    (1,872
    )Comprehensive income
    
    $
    58,803Dividends on Class A common Stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,021
    )
    
    
    
    
    
    
    
    
    
    
    (6,021
    )Dividends on Class B common Stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (527
    )
    
    
    
    
    
    
    
    
    
    
    (527
    )Issuance of Class A common Stock upon exercise
of stock options
    
    
    
    
    
    
    10
    
    
    
    2,223
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,233Issuance of Class A restricted stock
    
    
    
    
    
    
    
    
    
    
    174
    
    
    
    
    
    
    
    (174
    )
    
    
    
    
    
    
    Tax effect relating to share-based
compensation
    
    
    
    
    
    
    
    
    
    
    4,500
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,500Retirement of Class A common stock relating to
exercise of stock options
    
    
    
    
    
    
    (3
    )
    
    
    (4,665
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,668
    )Amortization of unearned
compensation   restricted stock grants
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    154
    
    
    
    
    
    
    
    154Retirement of Ryan Beck common stock
    
    
    
    
    
    
    
    
    
    
    (347
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (347
    )Net change in accumulated other comprehensive
loss, net of income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,872
    )
    
    
    (1,872
    )BALANCE, SEPTEMBER 30, 2005
    
    
    
    
    
    $
    608
    
    
    $
    261,587
    
    
    $
    265,082
    
    
    $
    (1,021
    )
    
    $
    (2,864
    )
    
    $
    523,392
  7




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS  UNAUDITED
 For the Nine Months(in thousands)
    
    Ended September 30,2005
    
    
    2004Operating activities:Net income
    
    $
    60,675
    
    
    $
    53,475Adjustments to reconcile net income to net cash provided
by operating activities:Recovery from credit losses, net*
    
    
    (6,306
    )
    
    
    (496
    )Depreciation, amortization and accretion, net
    
    
    13,774
    
    
    
    12,304Amortization of intangible assets
    
    
    1,226
    
    
    
    1,289Securities activities, net
    
    
    (373
    )
    
    
    (77
    )Gains on sale of real estate owned
    
    
    (1,264
    )
    
    
    (374
    )Gains on sales of loans held for sale
    
    
    (521
    )
    
    
    (331
    )Gains on sales of property and equipment
    
    
    (293
    )
    
    
    Gain on sale of branch
    
    
    (922
    )
    
    
    Equity earnings of unconsolidated subsidiaries
    
    
    (410
    )
    
    
    (359
    )Litigation settlement
    
    
    
    
    
    
    (22,840
    )Cost associated with debt redemption
    
    
    
    
    
    
    11,741Impairment of office properties and equipment
    
    
    3,706
    
    
    
    Issuance of forgivable notes receivable
    
    
    (3,366
    )
    
    
    (3,703
    )Originations and repayments of loans held for sale, net
    
    
    (113,021
    )
    
    
    (85,099
    )Proceeds from sales of loans held for sale
    
    
    109,509
    
    
    
    95,143Decrease (increase) in real estate inventory
    
    
    3,199
    
    
    
    (3,718
    )Decrease in securities owned activities, net
    
    
    5,145
    
    
    
    12,621Decrease in securities sold but not yet purchased
    
    
    (18,774
    )
    
    
    (6,053
    )(Increase) decrease in deferred tax asset, net
    
    
    (4,218
    )
    
    
    5,028Increase in accrued interest receivable
    
    
    (3,784
    )
    
    
    (2,260
    )(Increase) decrease in other assets
    
    
    (7,797
    )
    
    
    1,337Decrease (Increase) in due from clearing agent
    
    
    969
    
    
    
    (23,061
    )Increase in other liabilities
    
    
    10,537
    
    
    
    9,755Net cash provided by operating activities
    
    
    47,691
    
    
    
    54,322Investing activities:Proceeds from redemption and maturities of investment
securities and tax certificates
    
    
    163,227
    
    
    
    172,609Purchase of investment securities and tax certificates
    
    
    (223,338
    )
    
    
    (140,298
    )Purchases of securities available for sale
    
    
    (222,425
    )
    
    
    (539,238
    )Proceeds from sales and maturities of securities available for sale
    
    
    265,290
    
    
    
    244,608Purchases of FHLB stock, net
    
    
    (312
    )
    
    
    (22,100
    )Repayments from unconsolidated subsidiaries
    
    
    410
    
    
    
    359Investment in real estate joint venture
    
    
    (4,600
    )
    
    
    Net repayments (purchases and originations) of loans
    
    
    63,933
    
    
    
    (498,795
    )Proceeds from sales of real estate owned
    
    
    3,103
    
    
    
    2,834Proceeds from the sale of property and equipment
    
    
    664
    
    
    
    Additions to office property and equipment
    
    
    (26,117
    )
    
    
    (30,526
    )Net cash outflows from the sale of branch
    
    
    (13,605
    )
    
    
    Net cash provided by (used in) investing activities
    
    
    6,230
    
    
    
    (810,547
    )Financing activities:Net increase in deposits
    
    
    254,064
    
    
    
    184,149Repayments of FHLB advances
    
    
    (1,073,749
    )
    
    
    (314,740
    )Proceeds from the purchase of FHLB advances
    
    
    1,015,000
    
    
    
    770,000Net increase (decrease) in securities sold under agreements to
repurchase
    
    
    (148,677
    )
    
    
    61,741Net increase (decrease) in federal funds purchased
    
    
    (76,958
    )
    
    
    86,300Repayment of notes and bonds payable
    
    
    (1,039
    )
    
    
    (1,512
    )Proceeds from notes and bonds payable
    
    
    4,000
    
    
    
    1,697Proceeds from issuance of Class A common stock
    
    
    1,084
    
    
    
    2,160Payment of the minimum withholding tax upon exercise of stock
options
    
    
    (3,519
    )
    
    
    (1,810
    )Purchase of subsidiary common stock
    
    
    (491
    )
    
    
    Common stock dividends paid
    
    
    (6,548
    )
    
    
    (6,021
    )Net cash (used in) provided by financing activities
    
    
    (36,833
    )
    
    
    781,964Increase in cash and cash equivalents
    
    
    17,088
    
    
    
    25,739Cash and cash equivalents at beginning of period
    
    
    135,060
    
    
    
    119,882Cash and cash equivalents at end of period
    
    $
    152,148
    
    
    $
    145,621
  8




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 CONSOLIDATED STATEMENTS OF CASH FLOWS  UNAUDITED
 For the Nine Months(in thousands)
    
    Ended September 30,2005
    
    
    2004Cash paid forInterest on borrowings and deposits
    
    $
    97,284
    
    
    $
    63,653Income taxes
    
    
    10,632
    
    
    
    26,275Supplementary disclosure of non-cash investing and financing
activities:Loans transferred to real estate owned
    
    
    2,059
    
    
    
    1,106Net loan recoveries
    
    
    1,191
    
    
    
    4,288Tax certificate recoveries, net
    
    
    165
    
    
    
    311Decrease in current income taxes payable from the tax effect
associated with the exercise of employee stock options
    
    
    4,500
    
    
    
    4,924Change in accumulated other comprehensive income
    
    
    (1,872
    )
    
    
    (765
    )Change in deferred taxes on other comprehensive income
    
    
    (1,104
    )
    
    
    (442
    )Securities purchased pending settlement
    
    
    
    
    
    
    11,549Issuance and retirement of Class A common stock accepted as
consideration for the exercise price of stock options
    
    
    1,149
    
    
    
    906Reduction in stockholders equity from the retirement of Class A
common stock obtained from litigation settlement
    
    
    
    
    
    
    6,058
   9




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  UNAUDITED
 1. Presentation of Interim Financial Statements
     10




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 2. Stock Based Compensation
   For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands, except share data)
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Pro forma net incomeNet income, as reported
    
    $
    16,260
    
    
    $
    14,691
    
    
    $
    60,675
    
    
    $
    53,475Add: Stock-based employee compensation
expense included in reported net
income,
net of related income tax effects
    
    
    69
    
    
    
    44
    
    
    
    154
    
    
    
    132Deduct: Total stock-based employee
compensation expense determined under
fair value based method for all awards,
net of related income tax effects
    
    
    (804
    )
    
    
    (605
    )
    
    
    (1,826
    )
    
    
    (1,363
    )Pro forma net income
    
    $
    15,525
    
    
    $
    14,130
    
    
    $
    59,003
    
    
    $
    52,244Earnings per share:Basic as reported
    
    $
    0.27
    
    
    $
    0.25
    
    
    $
    1.01
    
    
    $
    0.90Basic pro forma
    
    $
    0.26
    
    
    $
    0.24
    
    
    $
    0.98
    
    
    $
    0.88Diluted as reported
    
    $
    0.26
    
    
    $
    0.23
    
    
    $
    0.95
    
    
    $
    0.84Diluted pro forma
    
    $
    0.25
    
    
    $
    0.22
    
    
    $
    0.92
    
    
    $
    0.82
   11




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 3. Litigation Settlement
  4. Impairment of Office Properties and Equipment
  5. Advances from the Federal Home Loan Bank
    6. Defined Benefit Pension Plan
  For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Service cost benefits earned during the period
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Interest cost on projected benefit obligation
    
    
    388
    
    
    
    383
    
    
    
    1,164
    
    
    
    1,149Expected return on plan assets
    
    
    (525
    )
    
    
    (500
    )
    
    
    (1,575
    )
    
    
    (1,500
    )Amortization of unrecognized net gains and
losses
    
    
    168
    
    
    
    111
    
    
    
    504
    
    
    
    332Net periodic pension expense (benefit)
    
    $
    31
    
    
    $
    (6
    )
    
    $
    93
    
    
    $
    (19
    )
  12




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 7. Securities Owned
   September 30,
    
    
    December 31,
    
    
    September 30,2005
    
    
    2004
    
    
    2004States and municipalities
    
    $
    28,766
    
    
    $
    10,824
    
    
    $
    13,334Corporations
    
    
    8,624
    
    
    
    10,093
    
    
    
    6,874U.S. Government and agencies
    
    
    33,119
    
    
    
    57,659
    
    
    
    45,781Corporate equity
    
    
    19,905
    
    
    
    18,042
    
    
    
    14,138Deferred compensation assets
    
    
    27,714
    
    
    
    27,898
    
    
    
    26,900Certificates of deposit
    
    
    2,170
    
    
    
    927
    
    
    
    4,917$
    120,298
    
    
    $
    125,443
    
    
    $
    111,944
   September 30,
    
    
    December 31,
    
    
    September 30,2005
    
    
    2004
    
    
    2004Corporate equity
    
    $
    3,788
    
    
    $
    3,498
    
    
    $
    4,015Corporate bonds
    
    
    1,440
    
    
    
    9,958
    
    
    
    6,083States and municipalities
    
    
    41
    
    
    
    269
    
    
    
    234U.S. Government and
agencies
    
    
    14,963
    
    
    
    25,384
    
    
    
    21,360Certificates of deposit
    
    
    456
    
    
    
    353
    
    
    
    68$
    20,688
    
    
    $
    39,462
    
    
    $
    31,760
  13




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 8. Loans Receivable
  September 30,
    
    
    December 31,
    
    
    September 30,2005
    
    
    2004
    
    
    2004Real estate loans:Residential
    
    $
    2,159,344
    
    
    $
    2,065,658
    
    
    $
    1,721,784Construction and development
    
    
    1,349,333
    
    
    
    1,454,048
    
    
    
    1,533,227Commercial
    
    
    945,977
    
    
    
    1,075,391
    
    
    
    957,777Small business
    
    
    145,570
    
    
    
    123,740
    
    
    
    117,559Loans to Levitt Corporation
    
    
    1,113
    
    
    
    8,621
    
    
    
    11,128Other loans:Home equity
    
    
    505,746
    
    
    
    457,058
    
    
    
    429,477Commercial business
    
    
    87,894
    
    
    
    91,505
    
    
    
    107,450Small business  non-mortgage
    
    
    76,990
    
    
    
    66,679
    
    
    
    63,984Loans to Levitt Corporation
    
    
    
    
    
    
    38,000
    
    
    
    38,000Consumer loans
    
    
    13,580
    
    
    
    14,540
    
    
    
    15,280Deposit overdrafts
    
    
    5,205
    
    
    
    3,894
    
    
    
    4,511Residential loans held for sale
    
    
    8,680
    
    
    
    4,646
    
    
    
    1,655Discontinued loans products (1)
    
    
    6,156
    
    
    
    8,285
    
    
    
    17,131Total gross loans
    
    
    5,305,588
    
    
    
    5,412,065
    
    
    
    5,018,963Adjustments:Undisbursed portion of loans in process
    
    
    (724,043
    )
    
    
    (767,804
    )
    
    
    (789,086
    )Premiums related to purchased loans
    
    
    5,968
    
    
    
    6,609
    
    
    
    923Deferred fees
    
    
    (3,573
    )
    
    
    (5,812
    )
    
    
    (5,451
    )Allowance for loan and lease losses
    
    
    (40,695
    )
    
    
    (46,010
    )
    
    
    (48,778
    )Loans receivable  net
    
    $
    4,543,245
    
    
    $
    4,599,048
    
    
    $
    4,176,571
 
 (1)
    
    Discontinued loan products consist of non-mortgage syndication loans, lease
financings, indirect consumer loans and certain small business loans originated
before 2002. These loan products were discontinued during prior periods.  14




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 9. Real Estate Held for Development and Sale
  September 30,
    
    
    December 31,
    
    
    September 30,2005
    
    
    2004
    
    
    2004Land and land
development costs
    
    $
    10,977
    
    
    $
    10,662
    
    
    $
    10,304Construction costs
    
    
    9,329
    
    
    
    12,163
    
    
    
    10,676Branch banking facilities
    
    
    1,467
    
    
    
    2,468
    
    
    
    2,467Other costs
    
    
    2,720
    
    
    
    2,399
    
    
    
    2,074Total
    
    $
    24,493
    
    
    $
    27,692
    
    
    $
    25,521
  For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Sales of real estate
    
    $
    4,872
    
    
    $
    3,388
    
    
    $
    19,672
    
    
    $
    7,813Cost of sales on real estate
    
    
    3,730
    
    
    
    2,488
    
    
    
    14,634
    
    
    
    5,925Gains on sales of real
estate
    
    $
    1,142
    
    
    $
    900
    
    
    $
    5,038
    
    
    $
    1,888
  10. Investments in unconsolidated subsidiaries
  September 30,
    
    
    December 31,
    
    
    September 30,2005
    
    
    2004
    
    
    2004Investment in rental property joint
venture
    
    $
    4,600
    
    
    $
    
    
    
    $
    Investment in statutory business trusts
    
    
    7,910
    
    
    
    7,910
    
    
    
    7,910Total
    
    $
    12,510
    
    
    $
    7,910
    
    
    $
    7,910
  15




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 11. Related Parties
    For the Three Months Ended September 30,BFC
    
    
    Levitt
    
    
    Total2005Service Fees
    
    $
    61
    
    
    $
    165
    
    
    $
    226Rent
    
    
    24
    
    
    
    38
    
    
    
    62Total
    
    $
    85
    
    
    
    203
    
    
    $
    2882004Service Fees
    
    $
    10
    
    
    $
    75
    
    
    $
    85Rent
    
    
    11
    
    
    
    20
    
    
    
    31Total
    
    $
    21
    
    
    $
    95
    
    
    $
    116
 16




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  For the Nine Months Ended September 30,BFC
    
    
    Levitt
    
    
    Total2005Service Fees
    
    $
    194
    
    
    $
    445
    
    
    $
    639Rent
    
    
    68
    
    
    
    50
    
    
    
    118Total
    
    $
    262
    
    
    $
    495
    
    
    $
    7572004Service Fees
    
    $
    30
    
    
    $
    225
    
    
    $
    255Rent
    
    
    33
    
    
    
    60
    
    
    
    93Total
    
    $
    63
    
    
    $
    285
    
    
    $
    348
    12. Segment Reporting
   Reportable Segment
    
    Operating Segments AggregatedBankAtlantic
    
    Community Banking, Commercial Lending, and Bank Investments.Ryan Beck
    
    Private Client Group, Investment Banking and Capital Markets.Parent Company
    
    BankAtlantic Bancorps operations, costs of acquisitions and financing activities.
  17




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  Adjusting andParent
    
    
    Elimination
    
    
    SegmentBankAtlantic
    
    
    Ryan Beck
    
    
    Company
    
    
    Entries
    
    
    Total2005Interest income
    
    $
    86,109
    
    
    $
    3,756
    
    
    $
    471
    
    
    $
    (44
    )
    
    $
    90,292Interest expense
    
    
    (30,170
    )
    
    
    (819
    )
    
    
    (4,929
    )
    
    
    44
    
    
    
    (35,874
    )Recovery from loan losses
    
    
    3,410
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,410Non-interest income
    
    
    25,718
    
    
    
    50,368
    
    
    
    450
    
    
    
    (32
    )
    
    
    76,504Non-interest expense
    
    
    (56,722
    )
    
    
    (53,146
    )
    
    
    (1,348
    )
    
    
    32
    
    
    
    (111,184
    )Segments profit before
taxes
    
    
    28,345
    
    
    
    159
    
    
    
    (5,356
    )
    
    
    
    
    
    
    23,148Provision for income taxes
    
    
    (9,054
    )
    
    
    264
    
    
    
    1,902
    
    
    
    
    
    
    
    (6,888
    )Segment net income (loss)
    
    $
    19,291
    
    
    $
    423
    
    
    $
    (3,454
    )
    
    $
    
    
    
    $
    16,260Total assets
    
    $
    6,036,213
    
    
    $
    190,327
    
    
    $
    794,577
    
    
    $
    (668,295
    )
    
    $
    6,352,8222004Interest income
    
    $
    62,930
    
    
    $
    2,849
    
    
    $
    607
    
    
    $
    (13
    )
    
    $
    66,373Interest expense
    
    
    (17,550
    )
    
    
    (230
    )
    
    
    (4,289
    )
    
    
    13
    
    
    
    (22,056
    )Provision for loan losses
    
    
    (1,717
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,717
    )Non-interest income
    
    
    22,332
    
    
    
    52,670
    
    
    
    261
    
    
    
    (89
    )
    
    
    75,174Non-interest expense
    
    
    (45,530
    )
    
    
    (48,105
    )
    
    
    (1,071
    )
    
    
    89
    
    
    
    (94,617
    )Segments profit before
taxes
    
    
    20,465
    
    
    
    7,184
    
    
    
    (4,492
    )
    
    
    
    
    
    
    23,157Provision for income taxes
    
    
    (6,866
    )
    
    
    (3,083
    )
    
    
    1,483
    
    
    
    
    
    
    
    (8,466
    )Segment net income
    
    $
    13,599
    
    
    $
    4,101
    
    
    $
    (3,009
    )
    
    $
    
    
    
    $
    14,691Total assets
    
    $
    5,385,674
    
    
    $
    175,458
    
    
    $
    724,417
    
    
    $
    (606,937
    )
    
    $
    5,678,612
 18




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
  Adjusting andParent
    
    
    Elimination
    
    
    SegmentBankAtlantic
    
    
    Ryan Beck
    
    
    Company
    
    
    Entries
    
    
    Total2005Interest income
    
    $
    248,684
    
    
    $
    10,192
    
    
    $
    1,762
    
    
    $
    (102
    )
    
    $
    260,536Interest expense
    
    
    (82,369
    )
    
    
    (2,289
    )
    
    
    (14,269
    )
    
    
    102
    
    
    
    (98,825
    )Recovery from loan losses
    
    
    6,506
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,506Non-interest income
    
    
    74,224
    
    
    
    188,969
    
    
    
    1,324
    
    
    
    (140
    )
    
    
    264,377Non-interest expense
    
    
    (165,302
    )
    
    
    (170,139
    )
    
    
    (4,811
    )
    
    
    140
    
    
    
    (340,112
    )Segments profit before taxes
    
    
    81,743
    
    
    
    26,733
    
    
    
    (15,994
    )
    
    
    
    
    
    
    92,482Provision for income taxes
    
    
    (26,820
    )
    
    
    (10,749
    )
    
    
    5,762
    
    
    
    
    
    
    
    (31,807
    )Segment net income (loss)
    
    $
    54,923
    
    
    $
    15,984
    
    
    $
    (10,232
    )
    
    $
    
    
    
    $
    60,6752004Interest income
    
    $
    176,035
    
    
    $
    8,511
    
    
    $
    1,697
    
    
    $
    (134
    )
    
    $
    186,109Interest expense
    
    
    (49,516
    )
    
    
    (714
    )
    
    
    (12,556
    )
    
    
    134
    
    
    
    (62,652
    )Recovery from loan losses
    
    
    1,105
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,105Non-interest income
    
    
    62,721
    
    
    
    178,743
    
    
    
    23,639
    
    
    
    (219
    )
    
    
    264,884Non-interest expense
    
    
    (141,958
    )
    
    
    (158,619
    )
    
    
    (4,175
    )
    
    
    219
    
    
    
    (304,533
    )Segments profit before taxes
    
    
    48,387
    
    
    
    27,921
    
    
    
    8,605
    
    
    
    
    
    
    
    84,913Provision for income taxes
    
    
    (16,659
    )
    
    
    (11,678
    )
    
    
    (3,101
    )
    
    
    
    
    
    
    (31,438
    )Segment net income
    
    $
    31,728
    
    
    $
    16,243
    
    
    $
    5,504
    
    
    $
    
    
    
    $
    53,475
 19




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BankAtlantic Bancorp, Inc. and Subsidiaries
 13. Financial instruments with off-balance sheet risk
  September 30,
    
    
    December 31,
    
    
    September 30,2005
    
    
    2004
    
    
    2004Commitments to sell fixed rate residential loans
    
    $
    18,681
    
    
    $
    19,537
    
    
    $
    20,158Commitments to sell variable rate residential loans
    
    
    3,600
    
    
    
    6,588
    
    
    
    6,233Forward contract to purchase mortgage-backed
securities
    
    
    
    
    
    
    3,947
    
    
    
    4,988Commitments to purchase fixed rate residential loans
    
    
    4,763
    
    
    
    
    
    
    
    Commitments to purchase variable rate residential
loans
    
    
    4,000
    
    
    
    40,015
    
    
    
    Commitments to originate loans held for sale
    
    
    13,601
    
    
    
    21,367
    
    
    
    24,617Commitments to originate loans held to maturity
    
    
    391,023
    
    
    
    238,429
    
    
    
    330,385Commitments to extend credit, including the
undisbursed
portion of loans in process
    
    
    1,212,150
    
    
    
    1,170,191
    
    
    
    1,176,208Standby letters of credit
    
    
    73,963
    
    
    
    55,605
    
    
    
    43,939Commercial lines of credit
    
    
    116,739
    
    
    
    121,688
    
    
    
    85,647
  14. 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
    )
 20




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BankAtlantic Bancorp, Inc. and Subsidiaries
 15. Earnings per Share
  For the Three Months Ended
    
    
    For the Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Basic earnings per share:Net income
    
    $
    16,260
    
    
    $
    14,691
    
    
    $
    60,675
    
    
    $
    53,475Basic weighted average number of
common shares outstanding
    
    
    60,555,158
    
    
    
    59,687,354
    
    
    
    60,361,595
    
    
    
    59,430,463Basic earnings per share
    
    $
    0.27
    
    
    $
    0.25
    
    
    $
    1.01
    
    
    $
    0.90Diluted earnings per share:Net income
    
    $
    16,260
    
    
    $
    14,691
    
    
    $
    60,675
    
    
    $
    53,475Effect of stock options issued by Ryan
Beck
    
    
    (21
    )
    
    
    (152
    )
    
    
    (806
    )
    
    
    (617
    )Income available after assumed conversion
    
    $
    16,239
    
    
    $
    14,539
    
    
    $
    59,869
    
    
    $
    52,858Basic weighted average shares outstanding
    
    
    60,555,158
    
    
    
    59,687,354
    
    
    
    60,361,595
    
    
    
    59,430,463Common stock equivalents resulting from
stock-based compensation
    
    
    2,637,970
    
    
    
    3,422,403
    
    
    
    2,814,290
    
    
    
    3,595,678Diluted weighted average shares
outstanding
    
    
    63,193,128
    
    
    
    63,109,757
    
    
    
    63,175,885
    
    
    
    63,026,141Diluted earnings per share
    
    $
    0.26
    
    
    $
    0.23
    
    
    $
    0.95
    
    
    $
    0.84
  16. New Accounting Pronouncements
 Determining Whether a
General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar
Entity When the Limited Partners Have Certain Rights.
 Accounting for Rental
Costs Incurred during a Construction Period.
 Practical Accommodation to the Application
of Grant Date as Defined in FASB Statement No. 123(R).
 21




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Share-based payments Accounting for Stock-Based Compensation Accounting for Stock Issued to Employees,
 17. Contingencies
  22




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   Critical Accounting Policies
  23




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Summary Consolidated Results of Operations
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands)
    
    2005
    
    
    2004
    
    
    Change
    
    
    2005
    
    
    2004
    
    
    ChangeBankAtlantic
    
    $
    19,291
    
    
    $
    13,599
    
    
    $
    5,692
    
    
    $
    54,923
    
    
    $
    31,728
    
    
    $
    23,195Ryan Beck
    
    
    423
    
    
    
    4,101
    
    
    
    (3,678
    )
    
    
    15,984
    
    
    
    16,243
    
    
    
    (259
    )Parent Company
    
    
    (3,454
    )
    
    
    (3,009
    )
    
    
    (445
    )
    
    
    (10,232
    )
    
    
    5,504
    
    
    
    (15,736
    )Net income
    
    $
    16,260
    
    
    $
    14,691
    
    
    $
    1,569
    
    
    $
    60,675
    
    
    $
    53,475
    
    
    $
    7,200
 For the Three Months Ended September 30, 2005 Compared to the Same 2004 Period:
        For the Nine Months Ended September 30, 2005 Compared to the Same 2004 Period:
    24




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 BankAtlantic  Net interest income
 BankAtlanticAverage Balance Sheet - Yield / Rate AnalysisFor the Three Months EndedSeptember 30, 2005
    
    
    September 30, 2004( in thousands)
    
    Average
    
    
    Revenue/
    
    
    Yield/
    
    
    Average
    
    
    Revenue/
    
    
    Yield/Balance
    
    
    Expense
    
    
    Rate
    
    
    Balance
    
    
    Expense
    
    
    RateLoans:Residential real estate
    
    $
    2,245,067
    
    
    
    27,676
    
    
    
    4.93
    %
    
    $
    1,583,353
    
    
    
    18,636
    
    
    
    4.71
    %Commercial real estate
    
    
    1,639,530
    
    
    
    30,839
    
    
    
    7.52
    
    
    
    1,662,978
    
    
    
    23,737
    
    
    
    5.71Consumer
    
    
    527,189
    
    
    
    8,433
    
    
    
    6.40
    
    
    
    438,205
    
    
    
    4,609
    
    
    
    4.21Lease financing
    
    
    2,768
    
    
    
    66
    
    
    
    9.54
    
    
    
    9,738
    
    
    
    235
    
    
    
    9.65Commercial business
    
    
    90,578
    
    
    
    1,828
    
    
    
    8.07
    
    
    
    104,022
    
    
    
    1,636
    
    
    
    6.29Small business
    
    
    216,931
    
    
    
    4,268
    
    
    
    7.87
    
    
    
    187,536
    
    
    
    3,372
    
    
    
    7.19Total loans
    
    
    4,722,063
    
    
    
    73,110
    
    
    
    6.19
    
    
    
    3,985,832
    
    
    
    52,225
    
    
    
    5.24Investments  tax exempt
    
    
    386,097
    
    
    
    5,617
    (1)
    
    
    5.82
    
    
    
    144,126
    
    
    
    1,948
    (1)
    
    
    5.41Investments  taxable
    
    
    712,092
    
    
    
    9,348
    
    
    
    5.25
    
    
    
    713,670
    
    
    
    9,439
    
    
    
    5.29Total interest earning assets
    
    
    5,820,252
    
    
    
    88,075
    
    
    
    6.05
    %
    
    
    4,843,628
    
    
    
    63,612
    
    
    
    5.25
    %Goodwill and core deposit intangibles
    
    
    79,494
    
    
    
    
    
    
    
    
    
    
    
    81,406Other non-interest earning assets
    
    
    312,261
    
    
    
    
    
    
    
    
    
    
    
    246,868Total Assets
    
    $
    6,212,007
    
    
    
    
    
    
    
    
    
    
    $
    5,171,902Deposits:Savings
    
    $
    303,268
    
    
    
    229
    
    
    
    0.30
    %
    
    $
    250,286
    
    
    
    169
    
    
    
    0.27
    %NOW
    
    
    666,567
    
    
    
    773
    
    
    
    0.46
    
    
    
    590,787
    
    
    
    555
    
    
    
    0.37Money market
    
    
    904,382
    
    
    
    3,729
    
    
    
    1.64
    
    
    
    931,596
    
    
    
    2,283
    
    
    
    0.97Certificate of deposit
    
    
    781,044
    
    
    
    5,788
    
    
    
    2.94
    
    
    
    718,826
    
    
    
    4,053
    
    
    
    2.24Total interest bearing deposits
    
    
    2,655,261
    
    
    
    10,519
    
    
    
    1.57
    
    
    
    2,491,495
    
    
    
    7,060
    
    
    
    1.13Short-term borrowed funds
    
    
    256,492
    
    
    
    2,151
    
    
    
    3.33
    
    
    
    287,011
    
    
    
    966
    
    
    
    1.34Advances from FHLB
    
    
    1,659,411
    
    
    
    17,332
    
    
    
    4.14
    
    
    
    1,036,651
    
    
    
    9,364
    
    
    
    3.59Long-term debt
    
    
    35,447
    
    
    
    645
    
    
    
    7.22
    
    
    
    36,231
    
    
    
    515
    
    
    
    5.65Total interest bearing liabilities
    
    
    4,606,611
    
    
    
    30,647
    
    
    
    2.64
    
    
    
    3,851,388
    
    
    
    17,905
    
    
    
    1.85Demand deposits
    
    
    1,000,694
    
    
    
    
    
    
    
    
    
    
    
    792,227Non-interest bearing other liabilities
    
    
    56,659
    
    
    
    
    
    
    
    
    
    
    
    22,626Total Liabilities
    
    
    5,663,964
    
    
    
    
    
    
    
    
    
    
    
    4,666,241Stockholders equity
    
    
    548,043
    
    
    
    
    
    
    
    
    
    
    
    505,661Total liabilities and stockholders equity
    
    $
    6,212,007
    
    
    
    
    
    
    
    
    
    
    $
    5,171,902Net tax equivalent interest income/
net interest spread
    
    
    
    
    
    $
    57,428
    
    
    
    3.41
    %
    
    
    
    
    
    $
    45,707
    
    
    
    3.40
    %Tax equivalent adjustment
    
    
    
    
    
    
    (1,966
    )
    
    
    
    
    
    
    
    
    
    
    (682
    )Capitalized interest from real estate operations
    
    
    
    
    
    
    477
    
    
    
    
    
    
    
    
    
    
    
    355Net interest income
    
    
    
    
    
    
    55,939
    
    
    
    
    
    
    
    
    
    
    
    45,380MarginInterest income/interest earning assets
    
    
    
    
    
    
    
    
    
    
    6.05
    %
    
    
    
    
    
    
    
    
    
    
    5.25
    %Interest expense/interest earning assets
    
    
    
    
    
    
    
    
    
    
    2.09
    
    
    
    
    
    
    
    
    
    
    
    1.47Net interest margin (tax equivalent)
    
    
    
    
    
    
    
    
    
    
    3.96
    %
    
    
    
    
    
    
    
    
    
    
    3.78
    %
 
 (1)
    
    The tax equivalent basis is computed using a 35% tax rate. 25




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BankAtlantic Bancorp, Inc. and Subsidiaries
      26




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BankAtlantic Bancorp, Inc. and Subsidiaries
 BankAtlanticAverage Balance Sheet
 Yield / Rate AnalysisFor the Nine Months EndedSeptember 30, 2005
    
    
    September 30, 2004( in thousands)
    
    Average
    
    
    Revenue/
    
    
    Yield/
    
    
    Average
    
    
    Revenue/
    
    
    Yield/Balance
    
    
    Expense
    
    
    Rate
    
    
    Balance
    
    
    Expense
    
    
    RateLoans:Residential real estate
    
    $
    2,198,170
    
    
    
    80,782
    
    
    
    4.90
    %
    
    $
    1,432,518
    
    
    
    50,358
    
    
    
    4.69
    %Commercial real estate
    
    
    1,708,272
    
    
    
    89,460
    
    
    
    6.98
    
    
    
    1,664,786
    
    
    
    70,101
    
    
    
    5.61Consumer
    
    
    506,902
    
    
    
    22,376
    
    
    
    5.89
    
    
    
    405,537
    
    
    
    12,577
    
    
    
    4.14Lease financing
    
    
    4,561
    
    
    
    365
    
    
    
    10.67
    
    
    
    11,628
    
    
    
    933
    
    
    
    10.70Commercial business
    
    
    90,199
    
    
    
    5,047
    
    
    
    7.46
    
    
    
    102,260
    
    
    
    4,725
    
    
    
    6.16Small business
    
    
    206,389
    
    
    
    11,978
    
    
    
    7.74
    
    
    
    181,222
    
    
    
    9,679
    
    
    
    7.12Total loans
    
    
    4,714,493
    
    
    
    210,008
    
    
    
    5.94
    
    
    
    3,797,951
    
    
    
    148,373
    
    
    
    5.21Investments  tax exempt
    
    
    362,988
    
    
    
    15,775
    (1)
    
    
    5.79
    
    
    
    73,646
    
    
    
    2,937
    
    
    
    5.32Investments  taxable
    
    
    722,477
    
    
    
    28,423
    
    
    
    5.25
    
    
    
    625,136
    
    
    
    25,753
    
    
    
    5.49Total interest earning assets
    
    
    5,799,958
    
    
    
    254,206
    
    
    
    5.84
    %
    
    
    4,496,733
    
    
    
    177,063
    
    
    
    5.25
    %Goodwill and core deposit intangibles
    
    
    79,923
    
    
    
    
    
    
    
    
    
    
    
    81,838Other non-interest earning assets
    
    
    297,873
    
    
    
    
    
    
    
    
    
    
    
    246,235Total Assets
    
    $
    6,177,754
    
    
    
    
    
    
    
    
    
    
    $
    4,824,806Deposits:Savings
    
    $
    295,450
    
    
    
    628
    
    
    
    0.28
    %
    
    $
    237,646
    
    
    
    473
    
    
    
    0.27
    %NOW
    
    
    672,224
    
    
    
    2,097
    
    
    
    0.42
    
    
    
    573,617
    
    
    
    1,581
    
    
    
    0.37Money market
    
    
    910,697
    
    
    
    9,727
    
    
    
    1.43
    
    
    
    903,579
    
    
    
    6,275
    
    
    
    0.93Certificate of deposit
    
    
    780,258
    
    
    
    15,896
    
    
    
    2.72
    
    
    
    732,715
    
    
    
    12,492
    
    
    
    2.28Total interest bearing deposits
    
    
    2,658,629
    
    
    
    28,348
    
    
    
    1.43
    
    
    
    2,447,557
    
    
    
    20,821
    
    
    
    1.14Short-term borrowed funds
    
    
    325,670
    
    
    
    6,955
    
    
    
    2.86
    
    
    
    246,218
    
    
    
    1,970
    
    
    
    1.07Advances from FHLB
    
    
    1,604,169
    
    
    
    46,610
    
    
    
    3.88
    
    
    
    832,177
    
    
    
    26,231
    
    
    
    4.21Long-term debt
    
    
    36,148
    
    
    
    1,823
    
    
    
    6.74
    
    
    
    36,168
    
    
    
    1,502
    
    
    
    5.55Total interest bearing liabilities
    
    
    4,624,616
    
    
    
    83,736
    
    
    
    2.42
    
    
    
    3,562,120
    
    
    
    50,524
    
    
    
    1.89Demand deposits
    
    
    965,900
    
    
    
    
    
    
    
    
    
    
    
    737,738Non-interest bearing other liabilities
    
    
    49,823
    
    
    
    
    
    
    
    
    
    
    
    27,063Total Liabilities
    
    
    5,640,339
    
    
    
    
    
    
    
    
    
    
    
    4,326,921Stockholders equity
    
    
    537,415
    
    
    
    
    
    
    
    
    
    
    
    497,885Total liabilities and stockholders equity
    
    $
    6,177,754
    
    
    
    
    
    
    
    
    
    
    $
    4,824,806Net interest income/net
interest spread
    
    
    
    
    
    $
    170,470
    
    
    
    3.42
    %
    
    
    
    
    
    $
    126,539
    
    
    
    3.36
    %Tax equivalent adjustment
    
    
    
    
    
    
    (5,521
    )
    
    
    
    
    
    
    
    
    
    
    (1,028
    )Capitalized interest from real estate operations
    
    
    
    
    
    
    1,366
    
    
    
    
    
    
    
    
    
    
    
    1,008Net interest income
    
    
    
    
    
    
    166,315
    
    
    
    
    
    
    
    
    
    
    
    126,519MarginInterest income/interest earning assets
    
    
    
    
    
    
    
    
    
    
    5.84
    %
    
    
    
    
    
    
    
    
    
    
    5.25
    %Interest expense/interest earning assets
    
    
    
    
    
    
    
    
    
    
    1.93
    
    
    
    
    
    
    
    
    
    
    
    1.50Net interest margin
    
    
    
    
    
    
    
    
    
    
    3.91
    %
    
    
    
    
    
    
    
    
    
    
    3.75
    %
 
 (1)
    
    The tax equivalent basis is computed using a 35% tax rate. For the Nine Months Ended September 30, 2005 Compared to the Same 2004 Period:
  27




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Provision for Loan Losses
 For the Three Months Ended
    
    
    For Nine Months Ended(in thousands)
    
    September 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Balance, beginning of period
    
    $
    43,650
    
    
    $
    46,737
    
    
    $
    46,010
    
    
    $
    45,595Charge-offs:Consumer loans
    
    
    (99
    )
    
    
    (139
    )
    
    
    (209
    )
    
    
    (529
    )Residential real estate loans
    
    
    (191
    )
    
    
    (151
    )
    
    
    (445
    )
    
    
    (506
    )Small business
    
    
    (68
    )
    
    
    (38
    )
    
    
    (663
    )
    
    
    (38
    )Continuing loan products
    
    
    (358
    )
    
    
    (328
    )
    
    
    (1,317
    )
    
    
    (1,073
    )Discontinued loan products
    
    
    (222
    )
    
    
    (570
    )
    
    
    (1,057
    )
    
    
    (1,216
    )Total charge-offs
    
    
    (580
    )
    
    
    (898
    )
    
    
    (2,374
    )
    
    
    (2,289
    )Recoveries:Commercial business loans
    
    
    120
    
    
    
    112
    
    
    
    1,351
    
    
    
    436Commercial real estate loans
    
    
    5
    
    
    
    
    
    
    
    11
    
    
    
    2,051Small business
    
    
    290
    
    
    
    61
    
    
    
    694
    
    
    
    303Consumer loans
    
    
    89
    
    
    
    55
    
    
    
    172
    
    
    
    209Residential real estate loans
    
    
    55
    
    
    
    53
    
    
    
    56
    
    
    
    296Continuing loan products
    
    
    559
    
    
    
    281
    
    
    
    2,284
    
    
    
    3,295Discontinued loan products
    
    
    476
    
    
    
    941
    
    
    
    1,281
    
    
    
    3,282Total recoveries
    
    
    1,035
    
    
    
    1,222
    
    
    
    3,565
    
    
    
    6,577Net recoveries
    
    
    455
    
    
    
    324
    
    
    
    1,191
    
    
    
    4,288(Recovery) provision for
loan losses
    
    
    (3,410
    )
    
    
    1,717
    
    
    
    (6,506
    )
    
    
    (1,105
    )Balance, end of period
    
    $
    40,695
    
    
    $
    48,778
    
    
    $
    40,695
    
    
    $
    48,778
 For the Three Months Ended September 30, 2005 Compared to the Same 2004 Period:
    For the Nine Months Ended September 30, 2005 Compared to the Same 2004 Period:
    28




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
   September 30,
    
    
    December 31,
    
    
    September 30,2005
    
    
    2004
    
    
    2004NONPERFORMING ASSETSNonaccrual:Tax certificates
    
    $
    385
    
    
    $
    381
    
    
    $
    448Loans and leases
    
    
    6,883
    
    
    
    7,903
    
    
    
    11,352Total nonaccrual
    
    
    7,268
    
    
    
    8,284
    
    
    
    11,800Repossessed assets:Real estate owned
    
    
    912
    
    
    
    692
    
    
    
    1,059Other
    
    
    46
    
    
    
    
    
    
    
    Total repossessed assets
    
    
    958
    
    
    
    692
    
    
    
    1,059Specific valuation allowance
    
    
    
    
    
    
    
    
    
    
    (2,095
    )Total nonperforming assets, net
    
    $
    8,226
    
    
    $
    8,976
    
    
    $
    10,764AllowancesAllowance for loan losses
    
    $
    40,695
    
    
    $
    46,010
    
    
    $
    48,778Allowance for tax certificate losses
    
    
    3,661
    
    
    
    3,297
    
    
    
    3,781Total allowances
    
    $
    44,356
    
    
    $
    49,307
    
    
    $
    52,559POTENTIAL PROBLEM LOANSContractually past due 90 days or more
    
    $
    
    
    
    $
    
    
    
    $
    Performing impaired loans
    
    
    203
    
    
    
    320
    
    
    
    167Restructured loans
    
    
    81
    
    
    
    24
    
    
    
    28TOTAL POTENTIAL PROBLEM LOANS
    
    $
    284
    
    
    $
    344
    
    
    $
    195
   29




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 BankAtlantic Non-Interest Income
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands)
    
    2005
    
    
    2004
    
    
    Change
    
    
    2005
    
    
    2004
    
    
    ChangeOther service charges and
fees
    
    $
    5,824
    
    
    $
    5,819
    
    
    $
    5
    
    
    $
    16,911
    
    
    $
    16,887
    
    
    $
    24Service charges on deposits
    
    
    16,415
    
    
    
    13,493
    
    
    
    2,922
    
    
    
    44,148
    
    
    
    37,798
    
    
    
    6,350Income from real estate
operations
    
    
    1,142
    
    
    
    900
    
    
    
    242
    
    
    
    5,038
    
    
    
    1,888
    
    
    
    3,150Securities activities, net
    
    
    23
    
    
    
    
    
    
    
    23
    
    
    
    117
    
    
    
    (3
    )
    
    
    120Other
    
    
    2,314
    
    
    
    2,120
    
    
    
    194
    
    
    
    8,010
    
    
    
    6,151
    
    
    
    1,859Non-interest income
    
    $
    25,718
    
    
    $
    22,332
    
    
    $
    3,386
    
    
    $
    74,224
    
    
    $
    62,721
    
    
    $
    11,503
 For the Three Months Ended September 30, 2005 Compared to the Same 2004 Period:
    For the Nine Months Ended September 30, 2005 Compared to the Same 2004 Period:
    BankAtlantic Non-Interest Expense
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands)
    
    2005
    
    
    2004
    
    
    Change
    
    
    2005
    
    
    2004
    
    
    ChangeEmployee compensation
and benefits
    
    $
    28,106
    
    
    $
    23,128
    
    
    $
    4,978
    
    
    $
    82,081
    
    
    $
    68,018
    
    
    $
    14,063Occupancy and equipment
    
    
    10,826
    
    
    
    8,100
    
    
    
    2,726
    
    
    
    30,108
    
    
    
    23,055
    
    
    
    7,053Advertising and promotion
    
    
    5,518
    
    
    
    3,301
    
    
    
    2,217
    
    
    
    16,651
    
    
    
    10,925
    
    
    
    5,726Cost associated with
debt redemption
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,741
    
    
    
    (11,741
    )Professional fees
    
    
    2,641
    
    
    
    3,667
    
    
    
    (1,026
    )
    
    
    7,174
    
    
    
    6,561
    
    
    
    613Impairment of office properties
and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,706
    
    
    
    
    
    
    
    3,706Other
    
    
    9,631
    
    
    
    7,334
    
    
    
    2,297
    
    
    
    25,582
    
    
    
    21,658
    
    
    
    3,924Non-interest expense
    
    $
    56,722
    
    
    $
    45,530
    
    
    $
    11,192
    
    
    $
    165,302
    
    
    $
    141,958
    
    
    $
    23,344
 30




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 For the Three Months Ended September 30, 2005 Compared to the Same 2004 Period:
       For the Nine Months Ended September 30, 2005 Compared to the Same 2004 Period:
    31




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Provision for Income Taxes
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands)
    
    2005
    
    
    2004
    
    
    Change
    
    
    2005
    
    
    2004
    
    
    ChangeIncome before income taxes
    
    $
    28,345
    
    
    $
    20,465
    
    
    $
    7,880
    
    
    $
    81,743
    
    
    $
    48,387
    
    
    $
    33,356Provision for income taxes
    
    
    9,054
    
    
    
    6,866
    
    
    
    2,188
    
    
    
    26,820
    
    
    
    16,659
    
    
    
    10,161BankAtlantic net income
    
    $
    19,291
    
    
    $
    13,599
    
    
    $
    5,692
    
    
    $
    54,923
    
    
    $
    31,728
    
    
    $
    23,195Effective tax rate
    
    
    31.94
    %
    
    
    33.55
    %
    
    
    (1.61
    )%
    
    
    32.81
    %
    
    
    34.43
    %
    
    
    (1.62
    )%
  32




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 RB Holdings, Inc. and Subsidiaries Results of Operations
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(in thousands)
    
    2005
    
    
    2004
    
    
    Change
    
    
    2005
    
    
    2004
    
    
    ChangeNet interest income:Interest on trading securities
    
    $
    3,756
    
    
    $
    2,849
    
    
    $
    907
    
    
    $
    10,192
    
    
    $
    8,511
    
    
    $
    1,681Interest expense
    
    
    (819
    )
    
    
    (230
    )
    
    
    (589
    )
    
    
    (2,289
    )
    
    
    (714
    )
    
    
    (1,575
    )Net interest income
    
    
    2,937
    
    
    
    2,619
    
    
    
    318
    
    
    
    7,903
    
    
    
    7,797
    
    
    
    106Non-interest income:Principal transactions
    
    
    22,894
    
    
    
    19,393
    
    
    
    3,501
    
    
    
    79,386
    
    
    
    65,490
    
    
    
    13,896Investment banking
    
    
    3,741
    
    
    
    13,835
    
    
    
    (10,094
    )
    
    
    41,017
    
    
    
    44,492
    
    
    
    (3,475
    )Commissions
    
    
    21,390
    
    
    
    18,564
    
    
    
    2,826
    
    
    
    61,183
    
    
    
    66,180
    
    
    
    (4,997
    )Other
    
    
    2,343
    
    
    
    878
    
    
    
    1,465
    
    
    
    7,383
    
    
    
    2,581
    
    
    
    4,802Non-interest income
    
    
    50,368
    
    
    
    52,670
    
    
    
    (2,302
    )
    
    
    188,969
    
    
    
    178,743
    
    
    
    10,226Non-interest expense:Employee compensation
and benefits
    
    
    39,358
    
    
    
    35,090
    
    
    
    4,268
    
    
    
    127,561
    
    
    
    119,429
    
    
    
    8,132Occupancy and equipment
    
    
    4,025
    
    
    
    3,680
    
    
    
    345
    
    
    
    11,929
    
    
    
    10,334
    
    
    
    1,595Advertising and promotion
    
    
    1,072
    
    
    
    1,389
    
    
    
    (317
    )
    
    
    4,085
    
    
    
    3,971
    
    
    
    114Professional fees
    
    
    1,411
    
    
    
    1,063
    
    
    
    348
    
    
    
    4,419
    
    
    
    3,438
    
    
    
    981Communications
    
    
    3,371
    
    
    
    3,182
    
    
    
    189
    
    
    
    10,084
    
    
    
    9,226
    
    
    
    858Floor broker and clearing fees
    
    
    2,305
    
    
    
    2,143
    
    
    
    162
    
    
    
    6,685
    
    
    
    7,383
    
    
    
    (698
    )Other
    
    
    1,604
    
    
    
    1,558
    
    
    
    46
    
    
    
    5,376
    
    
    
    4,838
    
    
    
    538Non-interest expense
    
    
    53,146
    
    
    
    48,105
    
    
    
    5,041
    
    
    
    170,139
    
    
    
    158,619
    
    
    
    11,520Income before income taxes
    
    
    159
    
    
    
    7,184
    
    
    
    (7,025
    )
    
    
    26,733
    
    
    
    27,921
    
    
    
    (1,188
    )Income taxes
    
    
    (264
    )
    
    
    3,083
    
    
    
    (3,347
    )
    
    
    10,749
    
    
    
    11,678
    
    
    
    (929
    )Segment net income
    
    $
    423
    
    
    $
    4,101
    
    
    $
    (3,678
    )
    
    $
    15,984
    
    
    $
    16,243
    
    
    $
    (259
    )
 For the Three and Nine Months Ended September 30, 2005 Compared to the Same 2004 Periods:
      33




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
         34




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Parent Company Results of Operations
 For the Three Months
    
    
    For the Nine Months(in thousands)
    
    Ended September 30,
    
    
    Ended September 30,2005
    
    
    2004
    
    
    Change
    
    
    2005
    
    
    2004
    
    
    ChangeNet interest income:Interest income
    
    $
    471
    
    
    $
    607
    
    
    $
    (136
    )
    
    $
    1,762
    
    
    $
    1,697
    
    
    $
    65Interest expense
    
    
    (4,929
    )
    
    
    (4,289
    )
    
    
    (640
    )
    
    
    (14,269
    )
    
    
    (12,556
    )
    
    
    (1,713
    )Net interest expense
    
    
    (4,458
    )
    
    
    (3,682
    )
    
    
    (776
    )
    
    
    (12,507
    )
    
    
    (10,859
    )
    
    
    (1,648
    )Non-interest income:Equity earnings of
unconsolidated subsidiaries
    
    
    142
    
    
    
    123
    
    
    
    19
    
    
    
    410
    
    
    
    359
    
    
    
    51Litigation settlement
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,840
    
    
    
    (22,840
    )Other
    
    
    308
    
    
    
    138
    
    
    
    170
    
    
    
    914
    
    
    
    440
    
    
    
    474Non-interest income
    
    
    450
    
    
    
    261
    
    
    
    189
    
    
    
    1,324
    
    
    
    23,639
    
    
    
    (22,315
    )Non-interest expense:Employee compensation
and benefits
    
    
    991
    
    
    
    774
    
    
    
    217
    
    
    
    2,999
    
    
    
    2,263
    
    
    
    736Professional fees
    
    
    186
    
    
    
    95
    
    
    
    91
    
    
    
    1,151
    
    
    
    1,182
    
    
    
    (31
    )Other
    
    
    171
    
    
    
    202
    
    
    
    (31
    )
    
    
    661
    
    
    
    730
    
    
    
    (69
    )Non-interest expense
    
    
    1,348
    
    
    
    1,071
    
    
    
    277
    
    
    
    4,811
    
    
    
    4,175
    
    
    
    636Loss before income taxes
    
    
    (5,356
    )
    
    
    (4,492
    )
    
    
    (864
    )
    
    
    (15,994
    )
    
    
    8,605
    
    
    
    (24,599
    )Income taxes
    
    
    (1,902
    )
    
    
    (1,483
    )
    
    
    (419
    )
    
    
    (5,762
    )
    
    
    3,101
    
    
    
    (8,863
    )Net income (loss)
    
    $
    (3,454
    )
    
    $
    (3,009
    )
    
    $
    (445
    )
   
    $
    (10,232
    )
    
    $
    5,504
    
    
    $
    (15,736
    )
       35




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 BankAtlantic Bancorp Consolidated Financial Condition
  
    
    Higher cash balances associated with an increase in cash letter receivables from other depository institutions;
    
    Decline in securities available for sale amounts due to securities maturities exceeding purchases;
    
    Higher investment securities primarily due to higher tax exempt securities balances;
    
    Lower loan balances resulting from declines in commercial and construction loan balances;
    
    Higher accrued interest receivable balances primarily associated with an increase in
yields at period end on interest earning assets;
    
    Lower real estate held for development and sale as a result of units closed at the
Riverclub real estate joint venture;
    
    Higher investment in unconsolidated subsidiaries related to an investment in a rental
real estate joint venture; and
    
    Increase in office properties and equipment amounts associated with the Companys new
corporate headquarters building and BankAtlantics branch renovation and expansion
initiatives.
  
    
    Repayments of short term Federal Home Loan Bank advances, securities sold under
agreements to repurchase and federal funds purchased from funds obtained from declining
loan and securities balances; and
    
    A decline in securities sold but not yet purchased associated with Ryan Becks trading
activities.
  
    
    Higher deposit balances primarily resulting from the growth in low-cost deposits
associated with Floridas Most Convenient Bank and totally free checking account
initiatives;
    
    An increase in other liabilities primarily due to higher current taxes payable
associated with a postponement of the third quarter estimated tax payment due dates and
    
    Additional borrowings at the Parent Company used to fund an investment in a rental
real estate joint venture.
  36




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Liquidity and Capital Resources
 BankAtlantic Bancorp, Inc. Liquidity and Capital Resources
     BankAtlantic Liquidity and Capital Resources
   37




---



##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
       Minimum RatiosAdequately
    
    
    WellActual
    
    
    Capitalized
    
    
    CapitalizedAmount
    
    
    Ratio
    
    
    Ratio
    
    
    RatioAt September 30, 2005:Total risk-based capital
    
    $
    514,947
    
    
    
    11.85
    %
    
    
    8.00
    %
    
    
    10.00
    %Tier 1 risk-based capital
    
    $
    448,819
    
    
    
    10.32
    %
    
    
    4.00
    %
    
    
    6.00
    %Tangible capital
    
    $
    448,819
    
    
    
    7.56
    %
    
    
    1.50
    %
    
    
    1.50
    %Core capital
    
    $
    448,819
    
    
    
    7.56
    %
    
    
    4.00
    %
    
    
    5.00
    %At December 31, 2004:Total risk-based capital
    
    $
    476,600
    
    
    
    10.80
    %
    
    
    8.00
    %
    
    
    10.00
    %Tier 1 risk-based capital
    
    $
    405,482
    
    
    
    9.19
    %
    
    
    4.00
    %
    
    
    6.00
    %Tangible capital
    
    $
    405,482
    
    
    
    6.83
    %
    
    
    1.50
    %
    
    
    1.50
    %Core capital
    
    $
    405,482
    
    
    
    6.83
    %
    
    
    4.00
    %
    
    
    5.00
    %
  38




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 Compliance Matter
  Ryan Beck & Co., Inc. Liquidity and Capital Resources
     39




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 Item 3. Quantitative and Qualitative Disclosures about Market Risk
  Interest Rate Risk
    i.
    
    Calculating the anticipated cash flows from existing assets and liabilities using
current repricing and prepayment assumptions;
 ii.
    
    Discounts the above expected cash flows 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).
   As of September 30, 2005NetChanges
    
    Interest
    
    
    Percentin Rate
    
    Income
    
    
    Change+200 bp
    
    $
    226,741
    
    
    
    -0.12
    %+100 bp
    
    $
    229,939
    
    
    
    1.29
    %0
    
    $
    227,005
    
    
    
    -100 bp
    
    $
    220,382
    
    
    
    -2.92
    %-200 bp
    
    $
    208,640
    
    
    
    -8.09
    %
 As of December 31, 2004NetChanges
    
    Interest
    
    
    Percentin Rate
    
    Income
    
    
    Change+200 bp
    
    $
    232,987
    
    
    
    3.41
    %+100 bp
    
    $
    232,395
    
    
    
    3.14
    %0
    
    $
    225,310
    
    
    
    0.00
    %-100 bp
    
    $
    213,516
    
    
    
    -5.23
    %-200 bp
    
    $
    200,288
    
    
    
    -11.11
    %
 40




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
   Equity Price Risk
 Ryan Beck
     High
    
    
    Low
    
    
    AverageVaR
    
    $
    443
    
    
    $
    55
    
    
    $
    199Aggregate Long Value
    
    
    155,347
    
    
    
    54,028
    
    
    
    90,609Aggregate Short Value
    
    $
    56,789
    
    
    $
    15,772
    
    
    $
    36,934
  High
    
    
    Low
    
    
    AverageVaR
    
    $
    1,747
    
    
    $
    11
    
    
    $
    336Aggregate Long Value
    
    
    112,494
    
    
    
    43,431
    
    
    
    72,787Aggregate Short Value
    
    $
    167,987
    
    
    $
    23,851
    
    
    $
    65,006
  41




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 BankAtlantic Bancorp
 Equity Pricing Risk
  AvailablePercent
    
    for SaleChange in
    
    Securities
    
    
    DollarFair Value
    
    Fair Value
    
    
    Change20%
    
    $
    104,004
    
    
    $
    17,33410%
    
    $
    95,337
    
    
    $
    8,6670%
    
    $
    86,670
    
    
    $
    -10%
    
    $
    78,003
    
    
    $
    (8,667
    )-20%
    
    $
    69,336
    
    
    $
    (17,334
    )
  Interest Rate Risk
  As of September 30, 2005NetChanges
    
    Interest
    
    
    Percentin Rate
    
    Expense
    
    
    Change+200 bp
    
    $
    22,545
    
    
    
    9.96
    %+100 bp
    
    $
    21,523
    
    
    
    4.98
    %0
    
    $
    20,502
    
    
    
    -100 bp
    
    $
    19,480
    
    
    
    -4.98
    %-200 bp
    
    $
    18,458
    
    
    
    -9.97
    %
 As of December 31, 2004NetChanges
    
    Interest
    
    
    Percentin Rate
    
    Expense
    
    
    Change+200 bp
    
    $
    20,721
    
    
    
    10.97
    %+100 bp
    
    $
    19,697
    
    
    
    5.48
    %0
    
    $
    18,673
    
    
    
    0.00
    %-100 bp
    
    $
    17,649
    
    
    
    -5.48
    %-200 bp
    
    $
    16,625
    
    
    
    -10.97
    %
 42




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
  Evaluation of Disclosure Controls and Procedures
  Changes in Internal Controls
  43




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 PART II  OTHER INFORMATION
  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 (1)
    
    
    per share
    
    
    or Programs (2)
    
    
    ProgramsJuly 1, 2005 through
July 31, 2005
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    August 1, 2005 through
August 31, 2005
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    September 30, 2005
through
September 30, 2005
    
    
    1,202
    
    
    
    17.00
    
    
    
    
    
    
    
    Total
    
    
    1,202
    
    
    $
    17.00
    
    
    
    
    
    
    
    
 
 1.
    
    The amount represents the number of shares of the Companys Class A Common Stock
redeemed by the Company as consideration for the payment of the exercise price and minimum
withholding taxes of stock options exercised during the period.2.
    
    The Company currently has no plan or program to repurchase its equity securities. 
 Item 6. Exhibits
 Exhibit 31.1
    
    CEO Certification pursuant to Regulation S-X Section 302Exhibit 31.2
    
    CFO Certification pursuant to Regulation S-X Section 302Exhibit 32.1
    
    CEO Certification 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 pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
 44




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##### Table of Contents



BankAtlantic Bancorp, Inc. and Subsidiaries
 
 Signatures
  BANKATLANTIC BANCORP, INC.November 9, 2005
    
    
    
    By:
    
    /s/ Alan B. LevanDate
    
    
    
    
    
    Alan B. LevanChief Executive Officer/
Chairman/PresidentNovember 9, 2005
    
    
    
    By:
    
    /s/ James A. WhiteDate
    
    
    
    
    
    James A. WhiteExecutive Vice President,
Chief Financial Officer
 45