BankAtlantic Bancorp Reports Financial Results for the Third Quarter, 2008

BankAtlantic Bancorp, Inc. (NYSE:BBX) today reported a net loss of ($6.1) million, or ($0.54) per diluted share, for the quarter ended September 30, 2008, representing a $23.5 million or 80.0% improvement compared to the net loss of ($29.6) million or ($2.61) per diluted share for the third quarter of 2007. BankAtlantic Bancorp ("the Company”) reported a net loss of ($19.4) million, or ($1.73) per diluted share, for the second quarter of 2008.

The Company reported a net loss from continuing operations (excludes additional proceeds received from the sale of Ryan Beck in February 2007, reflected as discontinued operations) of ($11.0) million, or ($0.98) per diluted share, for the quarter ended September 30, 2008, representing a 62.9% improvement compared to the net loss from continuing operations of ($29.6) million, or ($2.61) per diluted share, for the comparable quarter of 2007. The Company reported a net loss from continuing operations of ($19.4) million, or ($1.73) per diluted share, for the second quarter of 2008.

BankAtlantic, the banking subsidiary of BankAtlantic Bancorp, reported a net loss of ($2.1) million for the third quarter of 2008, compared to a net loss of ($27.1) million for the third quarter of 2007, and a net loss of ($14.1) million for the second quarter of 2008, an 85.1% improvement.

BankAtlantic Bancorp’s Chairman and Chief Executive Officer, Alan B. Levan, commented, "In the face of extremely challenging economic conditions and unprecedented turbulence in the financial sector, we are pleased with the continued improvements and efficiencies produced during the third quarter and over the last nine months. We believe this quarter’s results are a strong reflection of the improvement in BankAtlantic’s core operations. As discussed in detail below, as of September 30, 2008:

• "BankAtlantic continues to maintain consistently solid capital levels, exceeding all regulatory ‘well capitalized’ thresholds;
• "Third quarter net charge-offs declined from $22.8 million in the second quarter of 2008 to $14.9 million, a 68.3% and 34.5% improvement over the first and second quarters of 2008, respectively. Likewise, the third quarter provision for loan losses of $22.9 million was significantly lower than provisions for the first and second quarters of 2008 and for the third quarter of 2007;
• "Total delinquencies during the 2008 third quarter, excluding non-accrual loans and certain Commercial Real Estate loan renewals in process, increased 8 basis points from the second quarter 2008;
• "Net interest margin remained relatively stable, declining two basis points for the third quarter of 2008 compared to the second quarter of 2008;
• "Our savings from expense reduction initiatives in the third quarter of 2008 yielded a 7.6% improvement over the second quarter of 2008, and an 18.0% improvement over the third quarter of 2007;

"BankAtlantic has experienced a number of economic cycles since 1952, and while no cycle or downturn is exactly the same, BankAtlantic emerged from each a more efficient, more profitable company. Again, we are working hard to position our company for improved operating performance and steady growth, while maintaining prudent risk management policies. BankAtlantic’s lending practices never included subprime, option-arm or negative amortization products. Additionally, BankAtlantic’s investment portfolio does not include credit default swaps, commercial paper, collateralized debt obligations (CDO’s), structured investment vehicles (SIV’s), or Fannie Mae or Freddie Mac equity or debt securities.

"As banks and their names change in our markets, BankAtlantic remains ready to serve all Floridians. Customers do have a choice as to who their next bank is. BankAtlantic, ‘Florida’s Most Convenient Bank’, is here with a deep commitment to provide seven-day convenience, unparalleled service, and an attractive mix of banking products and services,” concluded Alan B. Levan.

BankAtlantic Highlights:

BankAtlantic Performance:

Net Income – BankAtlantic’s Chief Executive Officer, Jarett S. Levan, commented, "We continue to make progress in improving our operations, even in the midst of a recessionary economy and despite the losses associated with our loan portfolios.

"Year-to-date, pre-tax core operating earnings, which exclude the impact of loan loss provisions and impairment, restructuring and exit activity expenses, were $54.0 million versus $42.7 million at September 30, 2007, representing a 26.4% improvement. The third quarter 2008 pre-tax core operating earnings were $18.8 million compared to the $20.3 million reported for the second quarter of 2008, with the variance due primarily to $2.0 million in net securities activities in the second quarter of 2008 that did not recur in the third quarter and higher professional fees in the 2008 third quarter. Loan loss provisions, impairment, restructuring and exit activity expenses were ($23.4) million and ($43.8) million for the three months ended September 30, 2008 and June 30, 2008, respectively, and aggregated ($110.0) million and ($76.0) million for the nine months ended September 30, 2008 and 2007, respectively. Details for each period are provided in the supplementary financial statements included with this press release. We believe these improvements reflect management’s focus on reducing operating expenses and improving results in our core operations in spite of the challenges in the current economic environment.

"BankAtlantic is in the process of completing its annual goodwill impairment analysis. Although the analysis is not yet complete and may not be complete until the fourth quarter, the initial review process indicates that based on a combination of factors, including the economic environment and a sustained decline in the Company's stock price, goodwill in one or more of BankAtlantic’s reporting units might be determined to be impaired. As a result of the initial review, additional analysis is required and the Company is performing that analysis. While BankAtlantic carries approximately $70.5 million of goodwill on its balance sheet, any potential impairment charge related to goodwill would have no impact whatsoever on BankAtlantic’s operations, cash balances, liquidity or capital levels.

Capital Strength – "BankAtlantic continues to be well-capitalized. At September 30, 2008, BankAtlantic’s Core, Tier I and Total Capital ratios were 6.89%, 9.95% and 11.75%, respectively, consistent with expectations and well in excess of the regulatory well-capitalized thresholds of 5.0%, 6.0% and 10.0%. BankAtlantic’s ratio of non-performing assets to common equity plus reserves was 17.05% at September 30, 2008. BankAtlantic Bancorp contributed $10.0 million in capital to BankAtlantic during the third quarter of 2008, and has contributed $65.0 million of capital year-to-date, offsetting the impact of credit losses and further strengthening the Bank’s already well-capitalized base.

Deposits and Liquidity – "BankAtlantic’s deposit base continues to be a strong and stable funding source, with over 68% of our $3.9 billion in total deposits at September 30, 2008 comprised of non-CD balances, with an average cost of deposits for the third quarter 2008 of 1.57%. Historically, the third quarter has been a soft deposit growth period for BankAtlantic due to the seasonality of our primary markets and total deposit balances declined approximately 1.7% between the second and third quarter 2008, materially consistent with the 1.2% decline in total deposits between the second and third quarter 2007. We believe the decline is a result of normal seasonality factors combined with competitive deposit pricing in our marketplace and the overall impact of the economic environment on our depositor base.

"Overall liquidity remains strong. We effectively reduced our period-end borrowings at September 30, 2008 through a $256.2 million reduction of assets, primarily through scheduled runoff of residential loans and tax certificates. Further, BankAtlantic’s brokered deposit balances at September 30, 2008 amounted to only 4.0% of its total deposits, significantly below other Florida financial institutions.

Net Interest Margin – "Net interest income for the third quarter of 2008 improved to $51.2 million compared to $49.9 million in the previous quarter and $49.2 million in the corresponding 2007 quarter. The tax equivalent net interest margin was 3.56% in the third quarter of 2008, compared to 3.58% in the second quarter of 2008, and 3.59% in the corresponding quarter of 2007. Additionally, average earning assets increased $200.6 million and $20.1 million compared to the second quarter of 2008 and the comparable quarter of 2007, respectively, due primarily to seasonal growth in tax certificates, offset by our decision to slow loan growth as part of our credit risk management initiatives. Although we experienced considerable pricing pressures from competitors and some shifts in our deposit mix to higher cost deposits during the quarter, our net interest spread remained stable at 3.16% in the third quarter 2008 compared to 3.15% in the second quarter 2008.

Non-interest income – "Non-interest income, of which approximately 70.5% is associated with our core deposit account base, continues to provide a consistent and stable source of income for BankAtlantic. Non-interest income for the third quarter of 2008 was $33.9 million, a slight decrease from the second quarter of 2008 and third quarter of 2007. The decline was due primarily to securities activities in prior periods that did not recur in the third quarter of 2008, as well as a focused attempt to reduce fee and check losses. We believe this initiative will have a net, long term benefit to the Bank, even though the initial impact to fee income is slightly negative. Total non-interest income for the third quarter was 39.9% of total revenues.

Non-interest expense – "Year-to-date, excluding impairment, restructuring and exit activity charges of $6.4 million in 2008 and $14.7 million in 2007, non-interest expense improved $15.7 million or 7.3% from the 2007 year-to-date period. Excluding impairment, restructuring and exit activity charges of $11.0 million in the third quarter of 2007 and of $0.5 million in the third quarter of 2008, non-interest expense during the third quarter of 2008 was $66.3 million, an improvement of $4.2 million or 6.0% from the comparable 2007 quarter. Total non-interest expense was $66.8 million in the third quarter of 2008, compared to $81.5 million in the third quarter of 2007 and $72.3 million in the second quarter of 2008.

Credit Risk Management:

Credit – "BankAtlantic experienced third quarter net charge-offs of $14.9 million, representing a 68.3% and 34.5% improvement over the first and second quarters of 2008, respectively. The Commercial Real Estate charge-offs in the third quarter amounted to $5.0 million, the majority of which related to one loan.

"The provision for loan losses in the third quarter of 2008 was $22.9 million, significantly lower than the provisions of $37.8 million for the second quarter of 2008 and $48.9 million for the third quarter of 2007. BankAtlantic’s allowance for loan losses increased to $106.4 million at September 30, 2008, representing 2.40% of total loans, compared to 2.21% at June 30, 2008 and 1.97% at September 30, 2007. The increase in the allowance was primarily related to increases in our Consumer loan portfolio reserves. The ratio of the allowance to non-accrual loans at September 30, 2008 was 118.6%. Total non-accrual loans increased approximately $12 million in the third quarter of 2008 compared to the second quarter of 2008, in part due to backlogs in foreclosure activity in the residential portfolio. Commercial Real Estate non-accrual loan balances remained relatively unchanged from the prior quarter.

"Total delinquencies, excluding non-accrual loans and certain Commercial Real Estate renewals in process, increased 8 basis points from the second quarter of 2008. Delinquencies in the Commercial Real Estate and Small Business portfolios remained unchanged from the preceding quarter, and the Consumer portfolio improved 37 basis points. The Purchased Residential portfolio delinquencies, excluding non-accrual loans, increased 29 basis points to 0.73% during the quarter. However, this Residential portfolio has favorable loan to values and continues to experience low losses. (See details of charge-offs, non-accrual loans and delinquencies in the Capital & Credit Highlights tables below.)

Commercial Real Estate Loans – "The Bank’s Commercial Real Estate loan portfolio at September 30, 2008 totaled $1.2 billion, including the following loan categories:

"Builder land bank loans: This category of 7 loans aggregates $63.1 million; 2 of the loans, totaling $17.6 million, are on non-accrual.

"Land acquisition and development loans: This category of 26 loans aggregates $178.1 million; one loan, totaling $3.2 million, is on non-accrual.

"Land acquisition, development and construction loans: This category of 15 loans aggregates $77.7 million; 2 of these loans, totaling $17.3 million, are on non-accrual.

"These non-accrual commercial real estate loans are reflected on the Bank’s financial statements at approximately 46% of their principal balances before charge-offs or specific reserves. These three loan categories that we identified in the third quarter of 2007 continue to be the source for the majority of the Commercial Real Estate non accruals and related charge-offs. We expect continued pressure on this portfolio throughout 2008, including the possibility of additional non-accrual loans, provisions and charge-offs.

Purchased Residential Loans – "Our Purchased Residential loan portfolio was $1.9 billion at quarter-end, representing 43.4% of the Bank’s total loans. This portfolio consists of approximately 6,300 first mortgage loans secured by properties in every state in the nation. As we previously stated, our standard products in this portfolio have never included purchased or originated subprime, negative amortizing, or option-arm loans. The portfolio is geographically diverse, the weighted average FICO score of borrowers in this portfolio was 742 at the time of origination, the weighted average loan-to-value of the loans in this portfolio at the time of origination was 68.9%, and the original back end debt ratio was a weighted average of 33.4%. As of September 30, 2008, the average time to payment reset was 60 months. As indicated previously, while this portfolio is experiencing higher delinquencies than in the past, we continue to believe its overall performance remains strong.

Consumer Loans - "Our Consumer loan portfolio had outstanding balances of $736.0 million at quarter-end, with home equity loans representing 96.6% of this portfolio. None of our home equity loans have been purchased from others; 100% have been originated in our local markets with central underwriting. Approximately 20% of this portfolio is secured by first mortgages. The loans in this portfolio have an updated weighted average loan-to-value, inclusive of first mortgages, of 83.8%, and a weighted average Beacon score of borrowers of approximately 737. We continue to evaluate our consumer loan available commitments and attempt to reduce overall line exposure where appropriate. Partially as a result of this action, consumer loan outstanding balances have remained relatively unchanged since the second quarter of 2008. However, with these efforts, we anticipate that we will continue to experience elevated levels of delinquencies and charge-offs in this portfolio during the balance of the year, based on current economic conditions.”

BankAtlantic Bancorp:

BankAtlantic Bancorp’s Chairman and CEO, Alan B. Levan, further commented, "During the third quarter, 2008, the Company generated approximately $34 million in incremental cash to further support its operations and BankAtlantic. The cash was generated through the following:

• Sale of all of the warrants to acquire Stifel Financial Corp. common stock for $14.4 million, resulting in a net $1.1 million gain;
• Sale of all of the Stifel Financial Corp. common stock received on August 14, 2008 from Stifel as a partial pre-payment of the private client contingent payment earned as part of the sale of Ryan Beck Holdings, Inc. to Stifel in February 2007. The stock sale generated cash of $9.6 million and a net gain of $22,000; and
• Receipt of a $10.3 million tax refund;

"During the quarter, the Company made a $10 million capital contribution to BankAtlantic. At September 30, 2008, BankAtlantic Bancorp had $46.8 million in cash and investments.

Asset Workout Subsidiary – "As previously announced, during the first quarter of 2008, BankAtlantic Bancorp formed a wholly-owned asset workout subsidiary and purchased certain non-accrual loans from BankAtlantic. These assets are no longer held by BankAtlantic, and any gain or loss associated with these assets will have no impact on BankAtlantic’s operations or capital, but will be included in BankAtlantic Bancorp’s consolidated results. These assets, as with all other assets and liabilities at BankAtlantic Bancorp, should not be combined with those of BankAtlantic when evaluating and comparing metrics for BankAtlantic as the insured financial institution.

"At September 30, 2008, the loans held by the workout subsidiary totaled $84.4 million with specific loan reserves of $7.7 million. During the 2008 third quarter, primarily as a result of updated valuations, these loans were written-down by $8.3 million. The breakdown of these loans held by the Company’s asset workout subsidiary is as follows:

"Builder land bank loans: Four non-accrual loans aggregating $22.0 million.

"Land acquisition and development loans: Four non-accrual loans aggregating $19.5 million.

"Land acquisition, development and construction loans: Nine non-accrual loans aggregating $29.2 million.

"Other Commercial real estate loans: Three non-accrual loans aggregating $5.8 million.

"Commercial business loans: Three non-accrual loans aggregating $5.6 million and one performing loan in the amount of $2.3 million.

"These commercial real estate non-accrual loans are carried on BankAtlantic Bancorp’s books at approximately 60% of their principal balances prior to charge-offs or specific reserves. While BankAtlantic Bancorp may consider pursuing a possible joint venture or sale of its interests in the workout subsidiary in the future, there is no assurance this will occur.

Cash Dividend – "BankAtlantic Bancorp’s Board of Directors declared a cash dividend of $0.025 per share to all shareholders of record of its Class A and Class B Common Stock at the close of trading on October 3^rd, 2008. This quarter’s dividend declaration marked BankAtlantic Bancorp’s 61^st consecutive quarterly dividend payment,” concluded Alan B. Levan.

Financial Highlights:

All per share amounts presented below have been restated to reflect the one-for-five reverse stock split effected by BankAtlantic Bancorp on September 26, 2008

Third Quarter, 2008 Compared to Third Quarter, 2007

BankAtlantic Bancorp - consolidated:

• (Loss) from continuing operations of ($11.0) million versus ($29.6) million
• Diluted (loss) per share from continuing operations of ($0.98) versus ($2.61)
• Book value per share of $35.64 versus $42.10
• Tangible book value of $29.47 versus $34.46
• Closing market price on October 28, 2008 of $5.00 versus $20.65 on October 29, 2007

BankAtlantic:

• Business segment (loss) of ($2.1) million versus ($27.1) million
• Pre-tax operating earnings of $18.8 million versus $14.6 million- pre-tax operating earnings excludes the impact of provision for loan losses, impairments, restructuring and exit activities of ($23.4) million for the 2008 quarter and ($60.0) million for the 2007 quarter
• Over 33,000 new core deposit accounts opened
• Tax equivalent net interest margin of 3.56% versus 3.59%
• Non-interest income of $33.9 million versus $35.9 million
• Non-interest expense of $66.3 million versus $70.5 million, a decrease of 6.0%, before the impairment, restructuring and exit activities of $522,000 in 2008 and $11.0 million in 2007

Third Quarter, 2008 Compared to Second Quarter, 2008

BankAtlantic Bancorp - consolidated:

• (Loss) from continuing operations of ($11.0) million versus ($19.4) million
• Diluted (loss) per share from continuing operations of ($0.98) versus ($1.73)

BankAtlantic:

• Business segment (loss) of ($2.1) million versus ($14.1) million
• Pre-tax operating earnings of $18.8 million versus $20.3 million- pre-tax operating earnings excludes the impact of provision for loan losses, impairments, restructuring and exit activities of ($23.4) million for the third quarter and ($43.8) million for the second quarter
• Tax equivalent net interest margin of 3.56% versus 3.58%
• Non-interest income of $33.9 million versus $36.7 million
• Non-interest expense of $66.3 million versus $66.4 million, before the impairment, restructuring and exit activities of $522,000 in the third quarter and $6.0 million during the second quarter

Year-to-date 2008 Compared to Year-to-date 2007

BankAtlantic Bancorp - consolidated:

• (Loss) from continuing operations of ($54.9) million versus ($20.1) million
• Diluted (loss) per share from continuing operations of ($4.89) versus ($1.71)

BankAtlantic:

• Business segment (loss) of ($33.1) million versus ($16.1) million
• Pre-tax operating earnings of $54.0 million versus $42.7 million- pre-tax operating earnings excludes the impact of provision for loan losses, impairments, restructuring and exit activities of ($110.0) million year-to-date 2008 and ($76.0) million year-to-date 2007
• Nearly 136,000 new core deposit accounts opened
• Non-interest income of $106.2 million versus $107.6 million, a decrease of 1.29%
• Non-interest expense of $201.4 million versus $217.1 million, a decrease of 7.3%, before the $6.4 million and $14.7 million of impairment, restructuring and exit activities during the 2008 and 2007 periods

Third Quarter, 2008 Capital and Credit Highlights:

Financial data is provided in the supplemental financial tables available at www.BankAtlanticBancorp.com for both BankAtlantic (bank only) as well as the Parent- BankAtlantic Bancorp.

• 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.

Additionally, BankAtlantic financial information is provided quarterly to the OTS through Thrift Financial Reports, available to the public through the OTS and FDIC websites.

Copies of BankAtlantic Bancorp’s third quarter, 2008 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.

BankAtlantic Bancorp plans to host an investor and media teleconference call and webcast on Wednesday, October 29, 2008 at 11:00 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 67268597.

A replay of the conference call will be available beginning two hours after the call’s completion through 5:00 p.m. Eastern Time, Friday, November 14, 2008. 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 67268597.

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=51813. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Friday, November 14, 2008.

About BankAtlantic Bancorp:

BankAtlantic Bancorp (NYSE:BBX) is a bank holding company and the parent company of BankAtlantic.

About BankAtlantic:

BankAtlantic, "Florida's Most Convenient Bank", with over $6 billion in assets and more than 100 stores is one of the largest financial institutions headquartered in Florida. BankAtlantic provides a full line of products and services encompassing consumer and commercial banking. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, Totally Free Online Banking & Bill Pay, a 7-Day Customer Service Center, Totally Free Change Exchange coin counters and free retail and business checking with a free gift. BankAtlantic has been serving communities throughout Florida since 1952 and currently operates more than 250 conveniently located ATMs. The bank has supported thousands of charitable, civic and professional organizations since the inception of the BankAtlantic Foundation in 1994.

For further information, please visit our websites:

www.BankAtlanticBancorp.com

www.BankAtlantic.com

* To receive future BankAtlantic Bancorp news releases or announcements directly via Email, please click on the Email Broadcast Sign Up button on our website: www.BankAtlanticBancorp.com.

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, including the impact of a continued downturn in the economy or a recession on our business generally, as well as the ability of our borrowers to service their obligations and of our customers to maintain account balances; credit risks and loan losses, and the related sufficiency of the allowance for loan losses, including the impact on the credit quality of our loans (including those held in the asset workout subsidiary of the Company) of a sustained downturn in the economy and in the real estate market and other changes in the real estate markets in our trade area, and where our collateral is located; the quality of our residential land acquisition and development loans (including "Builder land bank loans”) and conditions specifically in that market sector; the risks of additional charge-offs, impairments and required increases in our allowance for loan losses; BankAtlantic Bancorp’s ability to successfully manage the loans held by the newly formed asset workout subsidiary; the successful completion of a sale or joint venture of BankAtlantic Bancorp’s interests in the newly formed asset workout subsidiary in the future, and the risk that we will continue to realize losses in that loan portfolio; changes in interest rates and the effects of, and changes in, trade, monetary and fiscal policies and laws including their impact on the bank’s net interest margin; adverse conditions in the stock market, the public debt market and other financial and credit markets and the impact of such conditions on our activities, the value of our assets and on the ability of our borrowers to service their debt obligations; BankAtlantic’s seven-day banking initiatives and other growth, marketing or advertising initiatives not resulting in continued growth of core deposits or increasing average balances of new deposit accounts or producing results which do not justify their costs; the success of our expense reduction initiatives and the ability to achieve additional cost savings; the success of BankAtlantic’s store expansion program, and achieving growth and profitability at the stores in the time frames anticipated, if at all; and the impact of periodic testing of goodwill, deferred tax assets and other assets for impairment. Past performance, actual or estimated new account openings and growth may not be indicative of future results. In addition to the risks and factors identified above, reference is also made to other risks and factors detailed in reports filed by the Company with the Securities and Exchange Commission. The Company cautions that the foregoing factors are not exclusive.