BankAtlantic Bancorp Reports Financial Results for Second Quarter, 2007

BankAtlantic Bancorp, Inc. (NYSE:BBX) today announced financial results for the quarter ended June 30, 2007. Net income was $11.6 million, or $0.19 per diluted share, compared to net income of $8.1 million, or $0.13 per diluted share, for the second quarter of 2006. Income from continuing operations was $11.7 million, or $0.20 per diluted share, compared to $10.4 million, or $0.17 per diluted share, for the 2006 period. Net income for the first six months of 2007 was $17.3 million, or $0.28 per diluted share, compared to $14.5 million, or $0.23 per diluted share, for the comparable 2006 period. Income from continuing operations for the first six months of 2007 was $9.5 million, or $0.16 per diluted share, compared to $18.5 million, or $0.29 per diluted share, for the comparable 2006 period. The second quarter and year-to-date results include an after-tax gain of approximately $5.3 million, or $0.09 per diluted share, and $4.2 million, or $0.07 per diluted share, respectively, associated with the quarterly valuation of warrants to purchase shares of Stifel Financial Corp. (Stifel) acquired in connection with the sale of Ryan Beck Holdings, Inc. (Ryan Beck) in the first quarter of 2007. BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, "While we remain committed to the expansion of BankAtlantic through organic growth, we understand that we are in a very challenging economic cycle. This quarter’s financial results compared to the prior year reflect growth in deposit accounts, continued opening of new stores, and our focus on operational efficiency. However, it also reflects the significant impact of the economic cycle on our business with margin compression, higher non-performing asset levels and an increase in our loan loss reserves. BankAtlantic Highlights Net Income – "For the second quarter of 2007, BankAtlantic’s net income was $10.4 million, down from $12.7 million in the comparable 2006 quarter. As discussed in detail later in this release, the decline was due primarily to net interest margin compression, costs associated with opening new stores, and an increased loan loss provision. These factors were offset in part during the quarter by an increase in non-interest income, a decrease in non-interest expense and a lower provision for income taxes, reflecting a lower effective tax rate based on the amount of projected tax-exempt income anticipated for the year.” Store Expansion Program – BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, "During the second quarter of 2007, we celebrated the grand opening of another new store, bringing the total to six stores opened to date in 2007. We have opened a total of 23 new stores since January 1, 2005, which as of June 30, 2007 had balances of $154.3 million in core deposits and $261.8 million in total deposits. (Core deposits include DDA, NOW and savings accounts.) Since the second quarter of 2006, the new stores generated net growth of $113.0 million in core deposits, $182.5 million of total deposits, and over 73,000 of new core deposit accounts. As a whole, these new stores continue to meet or exceed our net contribution goals to ‘break-even’ on a current earnings basis in 12-15 months. Because of the time required for newly opened stores to break-even, the expenses associated with BankAtlantic’s store expansion program negatively impacted BankAtlantic’s second quarter pre-tax results by approximately $2.9 million. We anticipate that the negative impact of the expansion program on 2007 pre-tax income will range between $13.0 and $14.0 million based on the anticipated addition of another 11-13 new stores during the remainder of 2007. We believe the costs of the expansion program are justified by the anticipated performance of the new stores, and that the new stores will continue to contribute to BankAtlantic’s overall deposit growth and franchise value as the stores mature. As of quarter-end, we had a total of 94 stores throughout Florida. Deposit Accounts and Balances – "At quarter-end, ‘total bank’ and ‘same store’ core deposit balances both increased 5% over the second quarter of 2006, representing a total bank net increase of $110.8 million in core deposits and $182.1 million in total deposits. In the second quarter of 2007, BankAtlantic opened over 60,000 new core deposit accounts, an increase of 4% over the second quarter of 2006, despite a 43% reduction in advertising expense in the 2007 quarter. Credit Quality – "The economic cycle has created a degree of uncertainty, particularly in Florida. As such, we remain cautious in our credit management. The following paragraphs are offered to provide additional clarity regarding the characteristics of our Commercial and Residential portfolios. Commercial Loans – "The Bank’s Commercial Real Estate loan portfolio at June 30, 2007 totaled $1.4 billion. This portfolio consists of retail, industrial, residential construction and development loans. Most of these loans are personally guaranteed, BankAtlantic’s interest in any of these loans generally does not exceed $20.0 million, and single borrower concentrations are limited to $40.0 million. Approximately twelve loans in this portfolio, aggregating approximately $135 million, are characterized as ‘Builder Land Loans’. ‘Builder Land Loans’ were made to borrowers who have agreements to sell the underlying collateral to national and local home builders pursuant to option contracts. However, due to the deterioration in the Florida housing market, some of these option contracts have been cancelled or modified. We continue to monitor the impact of the weak homebuilding environment on this portfolio. Although our non-accrual loans declined $3.9 million in the quarter from the first quarter of 2007, we may have additional downgrades and additional provisions relating to the portfolio if the housing market does not improve. Residential – "Our Purchased Residential Mortgage portfolio was $2.2 billion at quarter-end, representing approximately 47% of the Bank’s total loans. This portfolio contained no sub-prime or negative amortizing loans, and over 90% of the portfolio is distributed geographically outside of the state of Florida. The average FICO score in this portfolio was 741 at the time of origination, and the average original loan-to-value of the portfolio was 69%. Quarter-end delinquencies, including non-accrual loans, were 0.39% of the unpaid principal balance, and our loss history on this portfolio over the past twelve months was less than 0.01% of average outstandings. "As previously indicated, during the second quarter of 2007, overall non-accrual loans decreased 15%, or $3.9 million from the first quarter of 2007 but increased $16.5 million compared to the second quarter of 2006, primarily as a result of non-accruals in our ‘Builder Land Loans’ portfolio. As a result, the ratio of non-performing loans to total loans increased from 0.12% at June 30, 2006 to 0.47% at June 30, 2007. Annualized net charge-offs (recoveries) to average loans were 0.05% for the June 30, 2007 quarter, compared to (0.01)% for the June 30, 2006 quarter. The provision for loan losses in the second quarter of 2007 was $4.9 million, or 0.42% of average loans (annualized) versus a net recovery of $20,000 for the second quarter of 2006. The allowance for loan losses increased $12.7 million from $42.0 million (0.93% of total loans) at June 30, 2006 to $54.8 million (1.17% of total loans) at June 30, 2007. Net Interest Margin and Earning Assets – "Net interest income for the second quarter of 2007 was $50.9 million compared to $55.3 million in the corresponding 2006 quarter, reflecting a 45 basis point decline in the tax equivalent net interest margin offset in part by a 4% increase in average earning assets. Average earning assets increased $230.2 million, while average core deposits and total deposits increased $138.3 million and $199.2 million, respectively. "The tax equivalent net interest margin was 3.72% in the second quarter of 2007, down from 4.17% in the corresponding quarter of 2006. While earning asset yields improved 12 basis points, the cost of interest bearing liabilities increased 56 basis points, reflecting an increase in higher cost deposit categories and pricing tiers. Additionally, average demand deposits declined $119.9 million as we experienced migration to higher cost deposit products, and the higher yielding Commercial Real Estate loan portfolio declined approximately $96 million. Non-interest income – "Non-interest income for the second quarter was $36.7 million, a 5% increase over the comparable 2006 period. Excluding gains of $2.9 million in the second quarter of 2006 related to debt redemption and a sale of office properties, non-interest income would have increased 14% in the second quarter of 2007 over the comparable 2006 period. Additionally, non-interest income as a percent of total revenues rose to 42% in the second quarter of 2007 compared to 39% in 2006, reflecting the increase in the number of transaction accounts and an increase in revenue not directly impacted by the interest rate environment. Non-interest expense – "Non-interest expense for the second quarter of 2007 decreased $0.7 million from the second quarter of 2006 to $71.5 million, which included $4.8 million in increased expenses, year-over-year, related to our store expansion program. We previously noted that the impact of first quarter workforce reductions and reduced marketing expenditures would be reflected in the results for the second quarter. This is evidenced by a decline in expenses from the first to second quarter of 2007 of approximately $7.2 million. The first quarter of 2007 included a charge of $2.6 million in one-time termination benefits, and the second quarter of 2007 included a $1.1 million impairment charge of real estate held for sale; excluding these items, the improvement in expenses from the first to second quarter of 2007 would have been $5.8 million. We remain committed to prudent expense management in areas that do not impact our ‘Florida’s Most Convenient Bank’ strategy or affect customer service, and continue to explore opportunities for expense savings throughout the organization. However, the costs associated with the additional new stores that are planned to open in the third and fourth quarters of this year are anticipated to result in a net increase in expenses in 2007.” BankAtlantic Bancorp: Stifel Investment – BankAtlantic Bancorp’s Chairman and CEO, Alan B. Levan, further commented, "As previously announced during the first quarter of 2007, BankAtlantic Bancorp completed the sale of Ryan Beck to Stifel in a tax-free transaction. As part of the sale of Ryan Beck, BankAtlantic Bancorp received 2,377,354 shares of Stifel common stock and warrants to purchase 481,724 shares of Stifel common stock at an exercise price of $36 per share. As the warrants are accounted for as derivatives with changes in value reflected in earnings, we recorded a $6.1 million pre-tax gain for the quarter associated with the change in value of the warrants resulting from the increase in the Stifel stock price in the second quarter of 2007, versus the $(1.5) million loss recorded in the first quarter of 2007. Currently, unrealized pre-tax gains in the Stifel holdings are approximately $36 million (based on the July 24, 2007 closing price). Excluded from this figure is the contingent earn-out, if any, payable pursuant to the terms of the Ryan Beck agreement. The private client contingent payment is based upon defined revenues attributable to specified individuals over a two-year period; assuming such individuals achieve their 2006 revenues annually during the earn-out period, the earn-out would approximate $20 million. The private client earn-out is capped at $40 million for the two years. The investment banking contingent payment is based on defined revenues attributable to specified individuals, and is equal to 25% of the related fees in excess of $25 million for each of the next two years. The contingent payments are payable, at Stifel's election, in cash or common stock, but there is no assurance any amounts will ultimately be payable. Stock Buyback – "As part of our stock buyback program, BankAtlantic Bancorp repurchased just over 2 million shares during the second quarter of 2007. Under the current Board authorization which allows repurchase of up to 6 million shares, we have repurchased and retired approximately 3.9 million shares, or 7% of total outstanding shares at the time the program was initiated. Approximately 2.1 million shares remain available for repurchase under the current program, and we are currently evaluating increasing this amount. Cash Dividend – "BankAtlantic Bancorp’s Board of Directors declared a cash dividend of $0.041 per share to all shareholders of record of its Class A and Class B Common Stock at the close of trading on July 3rd, 2007. The second quarter’s dividend declaration marked BankAtlantic Bancorp’s 56th consecutive quarterly dividend payment.” Financial Highlights: Second Quarter, 2007 Compared to Second Quarter, 2006 BankAtlantic Bancorp - consolidated: Income from continuing operations was $11.7 million vs. $10.4 million, an increase of 12% Diluted earnings per share from continuing operations was $0.20 vs. $0.17 Return on average tangible equity from continuing operations was 10.47% Book value per share was $8.83 BankAtlantic: Business segment net income was $10.4 million vs. $12.7 million, a decrease of 18% Over 60,000 new core deposit accounts opened, an increase of 4% over accounts opened in the corresponding 2006 quarter Return on average tangible assets was 0.68% Return on average tangible equity was 8.26% Tax equivalent net interest margin decreased to 3.72% vs. 4.17% Non-interest income, before gains of $1.1 million associated with debt redemption and $1.8 million associated with the sale of office properties in 2006, was $36.7 million vs. $32.1 million, an increase of 14% Non-interest expense, before the $1.1 million impairment charge of real estate held for sale in 2007 and $1.0 million of costs associated with debt redemption in 2006, was $70.5 million vs. $71.2 million, a decrease of 1% Year to Date 2007 Compared to Year to Date 2006 BankAtlantic Bancorp - consolidated: Income from continuing operations was $9.5 million vs. $18.5 million Diluted earnings per share from continuing operations of $0.16 vs. $0.29 Return on average tangible equity from continuing operations was 4.24% BankAtlantic: Business segment net income was $11.0 million vs. $22.9 million Nearly 140,000 new core deposit accounts opened, an increase of 4% over accounts opened in 2006 Return on average tangible assets was 0.36% Return on average tangible equity was 4.39% Non-interest income, before gains of $1.5 million associated with debt redemption and $1.8 million associated with the sale of office properties in 2006, was $71.7 million vs. $58.7 million, an increase of 22% Non-interest expense, before the $1.1 million impairment charge of real estate held for sale in 2007, the one-time charge of $2.6 million for termination benefits in 2007 and the $1.5 million costs associated with debt redemption in 2006, grew to $146.7 million vs. $138.6 million, an increase of 6% BankAtlantic Bancorp will host an investor and media teleconference call and webcast on Wednesday, July 25, 2007, at 10:00 a.m. (Eastern Time). Teleconference Call Information: To access the teleconference call in the U.S. and Canada, the toll free number to call is 1-800-968-8156. International calls may be placed to 706-634-5752. Domestic and international callers may reference PIN number 5790546. A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Wednesday, August 8, 2007. To access the replay option in the U.S. and Canada, the toll free number to call is 1-800-642-1687. International calls for the replay may be placed at 706-645-9291. The replay digital PIN number for both domestic and international calls is 5790546. Webcast Information: Alternatively, individuals may listen to the live and/or archived webcast of the teleconference call. To listen to the webcast, visit www.BankAtlanticBancorp.com, access the "Investor Relations” section and click on the "Webcast” navigation link, or go directly to http://www.visualwebcaster.com/event.asp?id=40582. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Wednesday, August 8, 2007. BankAtlantic Bancorp’s second quarter, 2007 financial results press release and financial summary, as well as the Supplemental Financials (a detailed summary of significant financial events and extensive business segment financial data), will be available on its website at: www.BankAtlanticBancorp.com. To view the financial summary, access the "Investor Relations” section and click on the "Quarterly Financials” navigation link. To view the Supplemental Financials, access the "Investor Relations” section and click on the "Supplemental Financials” navigation link. Copies of BankAtlantic Bancorp’s second quarter, 2007 financial results press release and financial summary, and the Supplemental Financials will also be made available upon request via fax, email, or postal service mail. To request a copy, contact BankAtlantic Bancorp's Investor Relations department using the contact information listed below. About BankAtlantic Bancorp: BankAtlantic Bancorp (NYSE:BBX) is a diversified financial services holding company and the parent company of BankAtlantic. BankAtlantic Bancorp owned Ryan Beck Holdings, Inc. ("Ryan Beck”), a subsidiary engaged in retail and institutional brokerage and investment banking. On March 1, 2007, BankAtlantic Bancorp announced that it had completed the sale of Ryan Beck to Stifel Financial Corp. Ryan Beck is accounted for as a discontinued operation. About BankAtlantic: BankAtlantic, "Florida’s Most Convenient Bank,” is one of the largest financial institutions headquartered in Florida and provides a comprehensive offering of banking services and products via its broad network of community stores and its online banking division - BankAtlantic.com. BankAtlantic currently has 97 stores and operates more than 250 conveniently located ATMs. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, including several stores open until midnight, Totally Free Online Banking & Bill Pay, 24/7 Customer Service Center, Totally Free Change Exchange coin counters and free retail and business checking with a free gift. For further information, please visit our websites: www.BankAtlanticBancorp.com www.BankAtlantic.com BankAtlantic Bancorp Contact Info: Donna Rouzeau, Assistant Vice President, Investor Relations & Corporate Communications Email: CorpComm@BankAtlanticBancorp.com Leo Hinkley, Senior Vice President, Investor Relations Officer Email: InvestorRelations@BankAtlanticBancorp.com Phone: (954) 940-5300, Fax: (954) 940-5320 Mailing Address: BankAtlantic Bancorp, Investor Relations 2100 West Cypress Creek Road, Fort Lauderdale, FL 33309 BankAtlantic, "Florida's Most Convenient Bank," Contact Info: Public Relations: Hattie Hess, Vice President, Public Relations Telephone: 954-940-6383, Fax: 954-940-6310 Email: hhess@BankAtlantic.com Public Relations for BankAtlantic: Boardroom Communications Caren Berg Phone: 954-370-8999, Fax: 954-370-8892 Email: caren@boardroompr.com - To receive future BankAtlantic Bancorp news releases or announcements directly via Email, please click on the Email Broadcast Sign Up button on our website: www.BankAtlanticBancorp.com. Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act”), that involve substantial risks and uncertainties. When used in this press release and in any documents incorporated by reference herein, the words "anticipate,” "believe,” "estimate,” "may,” "intend,” "expect” and similar expressions identify certain of such forward-looking statements. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of BankAtlantic Bancorp, Inc. ("the Company”) and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products and services; credit risks and loan losses, and the related sufficiency of the allowance for loan losses, including the impact on the credit quality of our loans, of changes in the real estate markets in our trade area, and where our collateral is located; the quality of our residential land acquisition and development loans (including "Builder Land Loans”) and conditions specifically in that market sector; changes in interest rates and the effects of, and changes in, trade, monetary and fiscal policies and laws including their impact on the bank’s net interest margin; adverse conditions in the stock market, the public debt market and other capital markets and the impact of such conditions on our activities and the value of our assets; BankAtlantic’s seven-day banking initiatives and other growth, marketing or advertising initiatives not resulting in continued growth of core deposits or producing results which do not justify their costs; the success of our expense discipline initiatives; BankAtlantic’s new store expansion program, successfully opening the anticipated number of new stores in 2007 and achieving, growth and profitability at the stores in the time frames anticipated, if at all; and the impact of periodic testing of goodwill and other intangible assets for impairment. Past performance, actual or estimated new account openings and growth rate may not be indicative of future results. Additionally, we acquired a significant investment in Stifel equity securities in connection with the Ryan Beck Holdings, Inc. sale subjecting us to the risk of the value of Stifel shares and warrants received varying over time, and the risk that no gain will be realized. The earn-out amounts payable under the agreement with Stifel are contingent upon the performance of individuals and divisions of Ryan Beck which are now under the exclusive control and direction of Stifel, and there is no assurance that we will be entitled to receive any earn-out payments. In addition to the risks and factors identified above, reference is also made to other risks and factors detailed in reports filed by the Company with the Securities and Exchange Commission. The Company cautions that the foregoing factors are not exclusive. BankAtlantic Bancorp, Inc. and Subsidiaries Summary of Selected Financial Data (unaudited)   For the Six Months Ended For The Three Months Ended   6/30 2007 3/31 2007 12/31 2006 9/30 2006 6/30 2006 6/30 2007 6/30 2006   Earnings (in thousands): Net income (loss) from continuing operations $ 11,728 (2,204) 1,048 7,366 10,443 9,524 18,465 Net income (loss) $ 11,620 5,716 (1,670) 2,524 8,076 17,336 14,533   Average Common Shares Outstanding (in thousands): Basic 59,190 60,635 61,007 61,046 61,324 59,908 61,166 Diluted 59,929 60,635 62,278 62,412 62,820 60,922 62,792   Key Performance Ratios Basic earnings (loss) per share from continuing operations $ 0.20 (0.04) 0.02 0.12 0.17 0.16 0.30 Diluted earnings (loss) per share from continuing operations $ 0.20 (0.04) 0.02 0.12 0.17 0.16 0.29 Basic earnings (loss) per share $ 0.20 0.09 (0.03) 0.04 0.13 0.29 0.24 Diluted earnings (loss) per share $ 0.19 0.09 (0.03) 0.04 0.13 0.28 0.23 Return on average tangible assets from continuing operations (note 1) % 0.74 (0.14) 0.07 0.46 0.68 0.30 0.59 Return on average tangible equity from continuing operations (note 1) % 10.47 (1.96) 0.92 6.52 9.27 4.24 8.27   Average Balance Sheet Data (in millions): Assets $ 6,407 6,439 6,520 6,467 6,272 6,423 6,330 Tangible assets (note 1) $ 6,330 6,358 6,436 6,383 6,188 6,344 6,246 Loans $ 4,678 4,651 4,655 4,611 4,479 4,644 4,544 Investments $ 1,194 1,142 1,141 1,151 1,084 1,168 1,083 Deposits and escrows $ 4,048 3,902 3,776 3,731 3,849 3,975 3,840 Stockholders' equity $ 525 529 533 526 526 527 524 Tangible stockholders' equity (note 1) $ 448 450 454 452 451 449 447   Note: (1)Average tangible assets is defined as average total assets less average goodwill and core deposit intangibles. Average tangible equity is defined as average total stockholders' equity less average goodwill, core deposit intangibles and other comprehensive income.   BankAtlantic Bancorp, Inc. and Subsidiaries Consolidated Statements of Financial Condition (unaudited)     June 30, 2007 December 31, 2006 (in thousands, except share data) ASSETS Cash and cash equivalents $ 150,000 138,904 Securities available for sale (at fair value) 667,287 651,316 Investment securities held-to-maturity (approximate fair value: $291,019 and $209,020) 278,169 206,682 Financial instruments accounted for at fair value 14,892 - Tax certificates net of allowance of $3,829 and $3,699 230,540 195,391 Loans receivable, net of allowance for loan losses of $54,754 and $43,602 4,618,690 4,595,920 Federal Home Loan Bank stock, at cost which approximates fair value 74,003 80,217 Discontinued operations assets held for sale - 190,763 Real estate held for development and sale 25,110 25,333 Real estate owned 23,886 21,747 Office properties and equipment, net 241,327 219,717 Goodwill and other intangible assets 76,586 77,324 Other assets 94,557 92,348 Total assets $ 6,495,047 6,495,662 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits Demand $ 971,260 995,920 NOW 769,994 779,383 Savings 608,791 465,172 Money market 666,820 677,642 Certificates of deposit 1,000,278 948,919 Total deposits 4,017,143 3,867,036 Advances from FHLB 1,397,051 1,517,058 Securities sold under agreements to repurchase 77,440 101,932 Federal funds purchased and other short term borrowings 110,662 32,026 Subordinated debentures and bonds payable 29,397 29,923 Junior subordinated debentures 289,040 263,266 Discontinued operations liabilities held for sale - 95,246 Other liabilities 61,590 64,193 Total liabilities 5,982,323 5,970,680 Stockholders' equity: Common stock 581 611 Additional paid-in capital 231,639 260,460 Retained earnings 278,282 265,089 Total stockholders' equity before accumulated other comprehensive income (loss) 510,502 526,160 Accumulated other comprehensive income (loss) 2,222 (1,178) Total stockholders' equity 512,724 524,982 Total liabilities and stockholders' equity $ 6,495,047 6,495,662 BankAtlantic Bancorp, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) For the Six Months Ended For The Three Months Ended (in thousands) 6/30 2007 3/31 2007 12/31 2006 9/30 2006 6/30 2006 6/30 2007 6/30 2006   INTEREST INCOME: Interest and fees on loans $ 79,914 79,587 81,019 80,790 75,765 159,501 151,151 Interest on securities available for sale 4,628 4,561 4,472 4,483 4,314 9,189 8,619 Interest on tax exempt securities 3,800 3,796 3,817 3,804 3,862 7,596 7,668 Interest and dividends on taxable investments and tax certificates 5,433 5,596 6,543 6,039 4,396 11,029 8,772 Total interest income 93,775 93,540 95,851 95,116 88,337 187,315 176,210 INTEREST EXPENSE: Interest on deposits 21,473 19,002 17,258 15,095 13,852 40,475 26,606 Interest on advances from FHLB 18,103 18,723 20,837 18,509 13,007 36,826 27,146 Interest on short-term borrowed funds 2,010 2,555 2,505 5,078 4,931 4,565 7,506 Interest on secured borrowings - - - - - 2,401 Interest on long-term debt 6,136 6,114 6,184 6,521 6,377 12,250 12,340 Capitalized interest on real estate development - - (85) (75) (289) - (769) Total interest expense 47,722 46,394 46,699 45,128 37,878 94,116 75,230 NET INTEREST INCOME 46,053 47,146 49,152 49,988 50,459 93,199 100,980 Provision for (recovery from) loan losses 4,917 7,461 8,160 271 (20) 12,378 143 NET INTEREST INCOME AFTER PROVISION 41,136 39,685 40,992 49,717 50,479 80,821 100,837 NON-INTEREST INCOME: Service charges on deposits 25,808 24,595 26,091 24,008 21,274 50,403 40,373 Other service charges and fees 7,524 7,033 7,188 6,779 7,353 14,557 13,575 Securities activities, net 8,813 1,555 2,199 2,243 2,830 10,368 5,371 Gain on sales of loans 138 200 211 175 200 338 294 Gain associated with debt redemption - - - - 1,092 - 1,528 (Loss) income from real estate operations (12) - - - 114 (12) (982) Income from unconsolidated subsidiaries 669 1,146 303 266 278 1,815 1,098 (Loss) gain on the sale of office properties and equipment, net (42) (153) (148) (3) 1,806 (195) 1,778 Other 2,586 2,376 2,581 2,740 2,676 4,962 4,948 Total non-interest income 45,484 36,752 38,425 36,208 37,623 82,236 67,983 NON-INTEREST EXPENSE: Employee compensation and benefits 37,908 41,090 38,759 38,619 37,590 78,998 73,426 Occupancy and equipment 15,927 15,944 16,247 15,018 13,429 31,871 26,043 Impairment of real estate held for development and sale 1,056 - - - - 1,056 - Advertising and promotion 4,209 5,858 10,400 8,649 7,400 10,067 16,018 Professional fees 1,368 1,713 1,632 1,968 2,374 3,081 4,691 Costs associated with debt redemption - - - - 1,034 - 1,457 Check losses 2,731 1,857 2,639 2,855 1,875 4,588 3,121 Supplies and postage 1,632 1,853 1,736 1,719 1,737 3,485 3,398 Telecommunication 1,556 1,381 1,233 1,241 1,158 2,937 2,311 One-time termination benefits - 2,553 - - - 2,553 - Other 6,790 7,244 7,195 6,438 7,493 14,034 13,373 Total non-interest expense 73,177 79,493 79,841 76,507 74,090 152,670 143,838 Income (loss) from continuing operations before income taxes 13,443 (3,056) (424) 9,418 14,012 10,387 24,982 Provision (benefit) for income taxes 1,715 (852) (1,472) 2,052 3,569 863 6,517 Income (loss) from continuing operations 11,728 (2,204) 1,048 7,366 10,443 9,524 18,465 Discontinued operations (108) 7,920 (2,718) (4,842) (2,367) 7,812 (3,932) Net income (loss) $ 11,620 5,716 (1,670) 2,524 8,076 17,336 14,533 BankAtlantic Bancorp, Inc. and Subsidiaries Consolidated Average Balance Sheet (unaudited)   For the three months ended (in thousands except percentages and per share data) 6/30 2007 3/31 2007 12/31 2006 9/30 2006 6/30 2006   Loans: Residential real estate $ 2,215,606 2,181,478 2,176,047 2,130,077 2,047,430 Commercial real estate 1,384,405 1,420,944 1,462,005 1,498,192 1,480,314 Consumer 635,370 606,472 584,972 563,002 546,624 Commercial business 147,026 156,237 155,884 152,796 148,776 Small business 295,483 285,387 276,103 267,263 255,701 Total Loans 4,677,890 4,650,518 4,655,011 4,611,330 4,478,845 Investments - taxable 795,156 743,936 740,568 751,922 679,622 Investments - tax exempt 399,160 398,388 400,804 399,091 404,644 Total interest earning assets 5,872,206 5,792,842 5,796,383 5,762,343 5,563,111 Goodwill and core deposit intangibles 76,784 81,124 83,708 84,098 84,486 Discontinued assets held for sale - 118,319 232,317 226,146 236,122 Other non-interest earning assets 457,817 446,785 407,149 394,311 388,656 Total assets $ 6,406,807 6,439,070 6,519,557 6,466,898 6,272,375 Tangible assets (note 1) $ 6,330,023 6,357,946 6,435,849 6,382,800 6,187,889   Deposits: Demand deposits $ 989,259 989,293 1,006,242 1,043,497 1,109,005 Savings 605,939 529,435 413,239 367,829 364,946 NOW 782,018 771,017 735,164 727,517 764,738 Money market 677,545 650,383 694,057 733,058 765,805 Certificates of deposit 993,458 961,716 927,431 858,688 844,318 Total deposits 4,048,219 3,901,844 3,776,133 3,730,589 3,848,812 Short-term borrowed funds 151,656 197,683 189,519 374,913 396,870 FHLB advances 1,344,855 1,405,279 1,528,039 1,354,944 1,010,458 Long-term debt 293,489 292,899 293,592 300,549 303,052 Total borrowings 1,790,000 1,895,861 2,011,150 2,030,406 1,710,380 Discontinued liabilities held for sale - 61,202 141,254 131,266 138,339 Other liabilities 43,465 50,722 57,832 48,827 48,402 Total liabilities 5,881,684 5,909,629 5,986,369 5,941,088 5,745,933 Stockholders' equity 525,123 529,441 533,188 525,810 526,442 Total liabilities and stockholders' equity $ 6,406,807 6,439,070 6,519,557 6,466,898 6,272,375   Other comprehensive income (loss) in stockholders' equity 377 (2,142) (4,379) (10,270) (8,700) Tangible stockholders' equity (note 1) $ 447,962 450,459 453,859 451,982 450,656 Net Interest Margin 3.27% 3.35% 3.56% 3.63% 3.75%     Period End Total loans, net $ 4,618,690 4,622,784 4,595,920 4,638,215 4,484,764 Total assets 6,495,047 6,380,176 6,495,662 6,570,220 6,402,889 Total stockholders' equity 512,724 514,977 524,982 522,533 518,498 Class A common shares outstanding 53,212,871 54,956,368 56,157,425 56,114,600 56,338,922 Class B common shares outstanding 4,876,124 4,876,124 4,876,124 4,876,124 4,876,124 Cash dividends 2,386,145 2,458,490 2,507,673 2,506,136 2,330,675 Common stock cash dividends per share 0.041 0.041 0.041 0.041 0.038 Closing stock price 8.61 10.96 13.81 14.22 14.84 High stock price for the quarter 11.25 13.98 13.94 14.97 15.99 Low stock price for the quarter 8.38 10.87 12.66 12.96 13.86 Book value per share 8.83 8.61 8.60 8.57 8.47