EX-99 3 dec.txt Exhibit 99.1 BankAtlantic Bancorp Reports Earnings For The Fourth Quarter and Full Year 2003 2003 Income from Continuing Operations Increased 101%, 2003 Diluted Earnings Per Share Increased 94%, Levitt Spin-off Completed, Bank Elects to Prepay Selected Federal Home Loan Bank Advances and Terminate Interest Rate Swaps FORT LAUDERDALE, Florida - January 27, 2004 - BankAtlantic Bancorp, Inc. (NYSE: BBX), the parent company of BankAtlantic and Ryan Beck & Co., today reported record net income for 2003 of $67.7 million, or $1.08/diluted share, compared to $50.3 million, or $0.81/diluted share in 2002. Results for the year include operations of Levitt Corporation, which was spun off to shareholders on December 31, 2003, and accounted for as a discontinued operation. Excluding the Levitt results, income from continuing operations increased 101% to $38.6 million, up from $19.2 million earned in the 2002 period. Diluted earnings per share from continuing operations increased 94% to $0.62 for 2003, up from $0.32 in 2002. BankAtlantic Bancorp's spin-off of Levitt Corporation was completed at the close of business on December 31, 2003, and Levitt Corporation (NYSE: LEV) began trading as a separate, publicly held company on January 2, 2004. For the fourth quarter 2003, net income was $17.6 million, or $0.28/diluted share, compared to $18.1 million, or $0.29/diluted share in the corresponding 2002 quarter. After the effect of the Levitt spin-off, income from continuing operations for the quarter was $7.8 million, compared to $8.8 million earned in the corresponding 2002 quarter. Diluted earnings per share from continuing operations for the quarter were $0.12, compared to $0.14. Results for the quarter and full year were affected by management's decision to prepay certain fixed rate advances from the Federal Home Loan Bank, which led to after tax charges of $5.8 million ($0.09/share) in the quarter and $7.1 million ($0.11/share) year to date. These high cost fixed-rate funding prepayments involved approximately $140 million for the fourth quarter with an effective rate of 5.35%, and $325 million for the year 2003 with an effective rate of 5.57%. The decision to prepay these advances was made in expectation of a favorable impact in future interest costs. Realization of the expected interest savings is expected to occur within the 2004-2005 timeframe, depending on the future level of short-term interest rates. Chairman of the Board and Chief Executive Officer Alan B. Levan commented, "BankAtlantic Bancorp experienced excellent results throughout the organization in 2003. The spin-off of Levitt was a milestone for BankAtlantic Bancorp, in that it simplified our business model, and enabled Levitt, which has experienced rapid growth, to independently access the capital markets. It is clear from the reaction of the market to the spin-off that the action was well received. While the spin-off did result in decreased capital ratios at the holding company, with the ratio of tangible equity to tangible assets at an average of 6.65% in the fourth quarter, compared to 8.44% before the effect of the spin-off, both the bank and BankAtlantic Bancorp remain well capitalized. Growth in low cost deposits at BankAtlantic continued at the very high levels we have experienced since inception of our `Florida's Most Convenient Bank' program. Credit quality remained high. Additionally, in the fourth quarter, we were encouraged by a positive movement in the net interest margin. Ryan Beck contributed another good quarter, with a continuation of its favorable trend in financial performance. Additional accomplishments and highlights include: "BankAtlantic's `Florida's Most Convenient Bank' initiatives, including seven-day banking, extended weekday branch hours, 24/7 live customer service center, Totally Free Checking, free online banking, Totally Free Change Exchange coin counters, and dozens of additional products and services, continues to produce results that we believe are unprecedented in this market. Since January 2002, BankAtlantic has opened 244,000 new checking and savings accounts, including over 34,000 in the fourth quarter of 2003. The fourth quarter of 2003 marks the eighth consecutive quarter of double-digit growth in new low cost checking and savings account openings. In 2003, new checking (DDA/NOW) and savings account openings were approximately 145,000, compared to 99,000 in 2002, an increase of 46%. As shown in the tables below, balances in low cost deposits increased 34% on a `same branch basis' in the fourth quarter of 2003, to a total of $1.4 billion at quarter-end. Non-interest bearing demand deposits now constitute 21% of deposit funding, up from 16% last year. The following is the comparative data of New Account Openings: DEC MAR JUN SEP DEC '02MAR JUNE SEP DEC '01 '02 '02 '02 '03 '03 '03 '03 Demand 3% 4% 8% 0% Deposits % of Total Deposits 13% 1 14% 1 16% 1 19% 2 21% Low Cost 9% 2% 0% 3% Deposits* % of Total Deposits 26% 2 30% 3 35% 4 41% 4 45% Low Cost Deposit Growth* "Same Branch Year-over-Year Change** 15% 23% 30% 30% 31% 33% 36% 34% Effective 38% 45% 33% 18% rate, Low Cost Deposits* . .49% . .35% . .28% . .18% *DDA and NOW Checking plus Savings comprise Low Cost Deposits **Includes Branches open for 2 years or more "Commercial, small business, and consumer loan demand remained strong. For the full year, average loans grew 11%, average residential loans increased 15%, average commercial real estate loans rose 7%, and average consumer and small business loans increased 19%. "The Bank's trends in credit quality remained favorable during the fourth quarter, as the ratio of non-performing loans to total loans declined to 0.25% at year-end, 2003 vs. 0.28% at September 30, 2003 and 0.55% at year-end, 2002. The ratio of total non-performing assets to total loans and other real estate declined to 0.33% at year-end 2003 vs. 0.53% at September 30, 2003 and 0.83% at year-end, 2002. Net charge-offs for 2003 were $1.1 million vs. $19.8 million for 2002. For 2003, the ratio of net charge-offs to average outstanding loans declined to 0.03% versus 0.57% for 2002. This necessitated a negative provision for loan losses of $1.8 million and $0.5 million for the current quarter and full year, respectively. Also, because of lower charge-off expectations inherent in our loan portfolio, the ratio of the allowance for loan losses to total loans outstanding decreased to 1.22% from 1.40% at last year-end. However, the ratio of the allowance to non-performing assets increased to 355% from 160% at year-end, 2002. Reflecting the success of our strong emphasis on credit quality, the ratios of non-performing loans, non-performing assets, and net charge-offs have improved for the third straight year. "The net interest margin at BankAtlantic for the fourth quarter improved somewhat from the third quarter, 2003, rising to 3.39% from 3.10%. For the year, the margin declined to 3.28% from 3.52%. The margin improvement in the current quarter resulted from several factors, including a slowing in prepayments of mortgages, the growth in low cost deposits, and the effects of the prepayments of the FHLB advances and the termination of interest rate swaps. "Ryan Beck & Co. had record operating revenues in 2003 of $221.4 million, an increase of 57% over 2002. Fourth quarter operating revenues were a record $59.3 million, an increase of 33% compared to the fourth quarter of 2002, and business segment income from continuing operations rose 325% to a record $4.0 million vs. $0.9 million in the 2002 quarter. Expenses for the current quarter include a $1.7 million charge resulting from a NASD arbitration ruling in a case involving a claim by another firm related to Ryan Beck's hiring of staff. For the full year 2003, Ryan Beck business segment income from continuing operations rose to $9.6 million following a loss in 2002. "Each of Ryan Beck's major business units had strong results for the quarter indicating a continued pattern of improved revenue mix. For the quarter, revenues of the Private Client Group rose to $40.7 million, an increase of 19% vs. the comparable 2002 period. Trading revenues rose to $5.3 million, an increase of 15% vs. the comparable 2002 period. Investment-banking revenues rose to $8.2 million, an increase of 204% vs. the comparable 2002 period." Financial Highlights Fourth Quarter, 2003 Compared to Fourth Quarter, 2002 BankAtlantic Bancorp - consolidated results from continuing operations (excluding the results for Levitt Corp.): o Income from continuing operations of $7.8 million vs. $8.8 million, a decrease of 11%. Included in the 2003 period is the after-tax cost of $5.8 million associated with the prepayment of advances from the Federal Home Loan Bank. o Return (from continuing operations) on tangible equity was 7.23% vs. 9.59%. Excluding the cost of termination of the Federal Home Loan Bank advances, and adjusting for the decrease in equity resulting from the Levitt spin-off, return on tangible equity would be 17.20% for the current period. o Book value per share, adjusted for the Levitt spin-off, rose to $6.98. BankAtlantic: o Business segment net income of $7.8 million vs. $11.9 million. Included in the 2003 period is the after-tax cost of $5.8 million associated with the termination of advances from the Federal Home Loan Bank. o Return on tangible assets was 0.68% vs. 0.95%. Excluding the cost of termination of the Federal Home Loan Bank advances, return on tangible assets would be 1.18% for the current period. o Return on tangible equity was 7.69% vs. 12.54%. Excluding the cost of termination of the Federal Home Loan Bank advances, return on tangible equity would be 13.36% for the current period. o Net interest margin decreased to 3.39% for the current period. o Non-interest income was $16.9 million vs. $17.1 million. Included in the current period is a $1.6 million loss on termination of interest rate swap positions. Included in last year's fourth quarter is a $2.1 million gain associated with the sale of a commercial loan. o Non-interest expense grew to $45.5 million vs. $35.5 million. Included in the 2003 period is the pre-tax cost of $8.9 million ($5.8 million after-tax) associated with the prepayment of advances from the Federal Home Loan Bank mentioned above. Ryan Beck & Co: o Business segment net income from continuing operations increased to $4.0 million vs. $0.9 million. o Return (from continuing operations) on tangible equity was 22.43% vs. 6.33%. Full Year 2003 Compared to 2002: BankAtlantic Bancorp - consolidated results from continuing operations (excluding the results for Levitt Corp.) o Income from continuing operations of $38.6 million vs. $19.2 million, an increase of 101%. Included in 2003 is the after-tax cost of $8.2 million associated with the prepayment of advances from the Federal Home Loan Bank and other debt redemption. Included in 2002 are the after-tax costs totaling $19.6 million associated with debt redemption, impairment of equity securities and expenses related to the acquisition of certain assets of Gruntal & Co. o Diluted earnings per share from continuing operations of $0.62 vs. $0.32, an increase of 94%. The negative effects of advance prepayments and other debt redemption, the impairment of equity, and the Gruntal asset acquisition were $0.13 and $0.31, for 2003 and 2002, respectively. o Return (from continuing operations) on tangible equity was 9.49% vs. 5.38%. Excluding the negative effects of the items mentioned above, and adjusting for the decrease in equity resulting from the Levitt spin-off, the return on tangible equity was 15.67% and 14.28%, for 2003 and 2002, respectively. BankAtlantic: o Business segment net income of $42.1 million vs. $45.1 million, a decrease of 7%. Included in the 2003 results is the after-tax cost of $7.1 million associated with the termination of advances from the Federal Home Loan Bank. o Return on tangible assets was 0.86% vs. 0.92%. Excluding the cost of termination of the Federal Home Loan Bank advances, return on tangible assets would be 1.00% for 2003. o Return on tangible equity was 10.62% vs. 12.37%. Excluding the cost of termination of the Federal Home Loan Bank advances, return on tangible equity would be 12.41%. o Total average loans grew to $3.857 billion, vs. $3.473 billion, an increase of 11%. o Average Residential loans increased to $1.640 billion vs. $1.429 billion, an increase of 15%. o Average Commercial real estate loans increased to $1.611 billion vs. $1.501 billion, an increase of 7%. o Average Consumer loans increased to $316 million vs. $253 million, an increase of 25%. o Net interest margin decreased to 3.28% from 3.52%. o Non-interest income grew to $70.7 million vs. $53.3 million, an increase of 33%. o Non-interest expense grew to $161.6 million vs. $134.4 million. Included in the 2003 period is the pre-tax cost of $10.9 million ($7.1 million after-tax) associated with the termination of advances from the Federal Home Loan Bank. Ryan Beck & Co: o Business segment net income from continuing operations was $9.6 million vs. a loss of $2.5 million. Excluding expenses related to the Gruntal asset acquisition in 2002, segment net income was $9.6 million vs. $1.7 million. o Return (from continuing operations) on tangible equity was 13.51% in 2003, compared to a loss in 2002. * * * BankAtlantic Bancorp's Fourth Quarter and Full Year 2003 earnings results press release, financial summary, press release graphs, and the Supplemental Financials (extensive business segment financial data), are available on BankAtlantic Bancorp's website: www.BankAtlanticBancorp.com. o To view this press release online, access the "Press Room." o To view the financial summary, access the "Investor Relations" section and click on the "Quarterly Financials" navigation link. o To view the accompanying press release graphs, click o www.BankAtlanticBancorp.com/4Q2003Graphs, or access the "Investor Relations" section and click on the "Quarterly Financials" navigation link. o To view the Supplemental Financials, access the "Investor Relations" section and click on the "Supplemental Financials" navigation link. The Supplemental Financials include segment information. Operating segments are defined as components of an enterprise about which separate financial information is available that is regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assessing performance. The information provided for segment reporting is based on internal reports utilized by management. Copies of BankAtlantic Bancorp's Fourth Quarter and Full Year 2003 earnings results press release and financial summary, press release graphs, and the Supplemental Financials are also available upon request via fax, email, or postal service, by contacting BankAtlantic Bancorp's Investor Relations department using the contact information listed below. BankAtlantic Bancorp will host an investor and media teleconference call and webcast on Wednesday, January 28, 2004 at 10:30 a.m. EST. Teleconference Call: 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 4682613. A replay of the teleconference call will be available beginning two hours after the call's completion through 5:00 p.m., February 25, 2004. 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 to 706-645-9291. The replay digital PIN number for both domestic and international calls is: 4682613. Webcast: Individuals may listen to the live and/or archived webcast of the teleconference call. To listen to the live and/or archived webcast of the teleconference call, visit www.BankAtlanticBancorp.com, access the "Investor Relations" section and click on the "Webcast" navigation link. The archive of the teleconference call will be available through 5:00 p.m., March 31, 2004. About BankAtlantic Bancorp: BankAtlantic Bancorp (NYSE: BBX) is a diversified financial services holding company and the parent company of BankAtlantic, and Ryan Beck & Co. Through these subsidiaries, BankAtlantic Bancorp provides a full line of products and services encompassing consumer and commercial banking, brokerage and investment banking. 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 branches throughout Florida and its online banking division - BankAtlantic.com. BankAtlantic has 73 branch locations and operates more than 190 conveniently located ATMs. BankAtlantic is open 7 days a week and offers holiday hours, extended weekday hours, Totally Free Change Exchange coin counters, 24/7 call center service, and free retail and business checking with a free gift. Seven-Day Banking - Monday through Sunday o Extended branch lobby hours are 8:30 am - 5:00 pm, Monday through Wednesday, and 8:30 am - 8:00 pm, Thursday and Friday. o Extended drive-thru hours are 7:30 am - 8:00 pm, Monday through Friday. o Saturday branch lobby hours are 8:30 am - 3:00 pm, and drive-thru hours are 7:30 am - 6:00 pm. o Sunday branch lobby hours are 11:00 am - 4:00 pm, and drive-thru hours are 11:00 am - 4:00 pm. Ryan Beck & Co. is a full-service broker dealer engaging in underwriting, market making, distribution, and trading of equity and debt securities. The firm also provides money management services, general securities brokerage, including financial planning for the individual investor, consulting and financial advisory services to financial institutions and middle market companies. Ryan Beck & Co. also provides independent research in the financial institutions, healthcare, technology, and consumer product industries. Ryan Beck & Co. has approximately 500 financial consultants located in 33 offices nationwide. For further information, please visit our websites: www.BankAtlanticBancorp.com www.BankAtlantic.com www.RyanBeck.com * To receive future BankAtlantic Bancorp news releases or announcements directly via Email, please click on the Email Broadcast Sign Up button on: www.BankAtlanticBancorp.com BankAtlantic Bancorp Contact Info: Investor Relations: Contact: Leo Hinkley, Vice President Phone: (954) 760-5317 Fax: (954) 760-5415 Email: InvestorRelations@BankAtlanticBancorp.com. Mailing Address: BankAtlantic Bancorp, Investor Relations, 1750 East Sunrise Blvd., Fort Lauderdale, FL 33304 Corporate Communications: Contact: Sharon Lyn, Assistant Vice President Phone: (954) 760-5402 Fax: (954) 760-5415 Email: CorpComm@BankAtlanticBancorp.com BankAtlantic, "Florida's Most Convenient Bank," Contact Info: Public Relations: Contact: Hattie Harvey, Public Relations Manager Phone: (954) 760-5383 Fax: (954) 760-5108 Email: HHarvey@BankAtlantic.com. Public Relations for BankAtlantic: Boardroom Communications Contact: Caren Berg Phone: (954) 370-8999 Fax (954) 370-8892 Email: Caren@Boardroompr.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; changes in interest rates and the effects of, and changes in, trade, monetary and fiscal policies and laws; 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 initiative and other growth initiatives not being successful or producing results which do not justify their costs; the impact of periodic testing of goodwill and other intangible assets for impairment; as well as achieving the benefits of the prepayment of the Federal Home Loan Bank advances. Further, this press release contains forward-looking statements with respect to Ryan Beck & Co., which are subject to a number of risks and uncertainties including but not limited to the risks and uncertainties associated with its operations, products and services, changes in economic or regulatory policies, the volatility of the stock market and fixed income markets, as well as its revenue mix, the success of new lines of business, uncertainties associated with the Gruntal litigation; and additional risks and uncertainties that are subject to change and may be outside of Ryan Beck's control. 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. Summary of Selected Financial Data (unaudited) (in thousands except share data and ratios) For The Three Months Ended 12/31/2003 09/30/2003 06/30/2003 Current Earnings: Net income (GAAP basis) 17,642 18,508 17,209 Income from continuing (note 1) operations (GAAP basis) $7,826 10,144 9,809 Operating net income (note 2) $13,582 11,470 10,880 Average Common Shares Outstanding: Basic 58,891,273 58,646,254 58,321,020 Diluted 61,852,217 61,343,946 61,898,924 Key Performance Ratios (GAAP basis): Basic earnings per share 0.30 0.32 0.30 Diluted earnings per share * 0.28 0.30 0.28 Basic earnings per share from continuing operations $0.13 0.17 0.17 Diluted earnings per share from continuing operations * $0.12 0.16 0.16 Return on average tangible assets from cont ops (note 3) % 0.61 0.74 0.69 Return on average tangible equity from cont ops (note 3) % 7.23 9.77 9.91 Key Performance Ratios (Operating basis): Basic earnings per share $0.23 0.20 0.19 Diluted earnings per share * $0.22 0.19 0.18 Return on average tangible assets from cont ops (note 3,4) % 1.14 0.89 0.81 Return on average tangible equity from cont ops (note 3,4) % 17.20 15.23 15.09 * Diluted earnings per share calculation adds back interest expense net of tax on convertible securities, if dilutive $-- -- 129 Subsidiaries stock options, if dilutive (104) (83) (27) Average Balance Sheet Data: Assets $5,221,228 5,579,697 5,787,226 Tangible assets (note 3) $5,132,341 5,490,370 5,696,656 Tangible assets excluding Levitt (note 3) $4,751,321 5,141,183 5,371,749 Loans $3,698,377 3,942,124 3,983,528 Investments $773,271 901,283 1,087,937 Deposits and escrows $3,032,170 2,951,536 2,925,061 Stockholders' equity $521,393 503,274 480,115 Tangible stockholders' equity (note 3) $433,103 415,294 396,050 Tangible stockholders' equity excluding Levitt (note 3) $315,808 301,310 288,452 BankAtlantic Bancorp, Inc. and Subsidiaries Summary of Selected Financial Data (unaudited) For The Three Months Ended (in thousands except share data and ratios) 03/31/2003 12/31/2002 Current Earnings: Net income (GAAP basis) 14,358 18,066 Income from continuing operations (GAAP basis) (note 1) 10,818 8,759 Operating net income (note 2) 10,818 9,712 Average Common Shares Outstanding: Basic 58,171,621 58,085,481 Diluted 64,250,488 64,188,382 Key Performance Ratios (GAAP basis): Basic earnings per share 0.25 0.31 Diluted earnings per share * 0.23 0.29 Basic earnings per share from continuing operations 0.19 0.15 Diluted earnings per share from continuing operations * 0.17 0.14 Return on average tangible assets from cont ops (note 3) 0.80 0.64 Return on average tangible equity from cont ops (note 3) 11.31 9.59 Key Performance Ratios (Operating basis): Basic earnings per share 0.19 0.17 Diluted earnings per share * 0.17 0.16 Return on average tangible assets from cont ops (note 3,4) 0.85 0.75 Return on average tangible equity from cont ops (note 3,4) 15.40 14.49 * Diluted earnings per share calculation adds back interest expense net of tax on convertible securities, if dilutive 440 440 Subsidiaries stock options, if dilutive (47) (14) Average Balance Sheet Data: Assets 5,491,930 5,552,458 Tangible assets (note 3) 5,399,787 5,459,454 Tangible assets excluding Levitt (note 3) 5,090,888 5,163,952 Loans 3,633,446 3,602,605 Investments 1,131,737 1,207,985 Deposits and escrows 2,851,626 2,970,904 Stockholders' equity 464,712 456,579 Tangible stockholders' equity (note 3) 382,487 365,469 Tangible stockholders' equity excluding Levitt (note 3) 281,053 268,020 BankAtlantic Bancorp, Inc. and Subsidiaries Summary of Selected Financial Data (unaudited) (in thousands except share data and ratios) For The Years Ended 12/31/2003 12/31/2002 Current Earnings: Net income (GAAP basis) 67,717 50,335 Income from continuing operations (GAAP basis) (note 1) 38,597 19,150 Operating net income (note 2) 46,750 38,799 Average Common Shares Outstanding: Basic 58,509,894 57,997,556 Diluted 62,354,430 64,400,725 Key Performance Ratios (GAAP basis): Basic earnings per share 1.16 0.87 Diluted earnings per share * 1.08 0.81 Basic earnings per share from continuing operations 0.66 0.33 Diluted earnings per share from continuing operations * 0.62 0.32 Return on average tangible assets from cont ops (note 3) 0.71 0.36 Return on average tangible equity from cont ops (note 3) 9.49 5.38 Key Performance Ratios (Operating basis): Basic earnings per share 0.80 0.67 Diluted earnings per share * 0.75 0.63 Return on average tangible assets from cont ops (note 3,4) 0.92 0.77 Return on average tangible equity from cont ops (note 3,4) 15.67 14.28 * Diluted earnings per share calculation adds back interest expense net of tax on convertible securities, if dilutive 569 1,760 Subsidiaries stock options, if dilutive (251) (24) Average Balance Sheet Data: Assets 5,522,121 5,410,030 Tangible assets (note 3) 5,431,901 5,331,769 Tangible assets excluding Levitt (note 3) 5,090,898 5,066,257 Loans 3,814,857 3,430,387 Investments 972,389 1,324,938 Deposits and escrows 2,940,624 2,854,870 Stockholders' equity 492,500 434,380 Tangible stockholders' equity (note 3) 406,837 356,271 Tangible stockholders' equity excluding Levitt (note 3) 298,367 271,673 Notes: (1) GAAP basis income from continuing operations is defined as income from continuing operations in accordance with generally accepted accounting principles. (2) Operating net income is defined as GAAP income from continuing operations adjusted for restructuring charges and write downs, costs associated with debt redemptions, loss on mutual funds associated with the acquired Gruntal deferred compensation plan, acquisition and conversion related charges and impairment of equity securities, net of tax. (3) Average tangible assets is defined as average total assets less average goodwill and core deposit intangibles. Average tangible stockholders' equity is defined as average total stockholders' equity less average goodwill, core deposit intangibles and other comprehensive income. (4) Return on average tangible assets and equity are calculated excluding Levitt Corporation's assets and equity for comparability. ** Operating net income is not prepared in accordance with GAAP and this non-GAAP financial measure should not be construed as being superior to GAAP. BankAtlantic Bancorp, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) For The Three Months Ended (in thousands) 12/31/2003 09/30/2003 06/30/2003 INTEREST INCOME: Interest and fees on loans and leases $49,130 51,213 54,791 Interest on securities available for sale 3,372 4,598 7,686 Interest and dividends on investment and trading securities 7,833 7,545 7,344 Total interest income 60,335 63,356 69,821 INTEREST EXPENSE: Interest on deposits 7,504 7,758 9,758 Interest on advances from FHLB 11,667 15,025 15,291 Interest on short-term borrowed funds 289 558 1,248 Interest on long-term debt 4,882 4,802 5,131 Capitalized interest on real estate developments (312) (286) (256) Total interest expense 24,030 27,857 31,172 NET INTEREST INCOME 36,305 35,499 38,649 Provision (recovery) for loan losses (1,811) (1,076) 1,490 NET INTEREST INCOME AFTER PROVISION 38,116 36,575 37,159 NON-INTEREST INCOME: Service charges on deposits 11,481 10,925 9,605 Other service charges and fees 4,704 4,625 6,071 Broker/dealer revenue and other commissions 55,566 49,992 50,565 Securities activities, net (1,582) (336) (19) Impairment of securities -- -- -- Gain on sales of loans 108 10 1 Income from real estate operations 354 66 4,136 Income from unconsolidated subsidiaries 119 106 118 Other 2,492 2,405 2,125 Total non-interest income 73,242 67,793 72,602 NON-INTEREST EXPENSES: Employee compensation and benefits 56,795 55,318 57,415 Occupancy and equipment 10,522 10,161 9,615 Advertising and promotion 3,110 2,989 3,819 Professional fees 5,243 4,239 3,715 Communications 2,917 2,821 4,216 Floor broker and clearing fees 2,506 2,327 2,236 Other 7,391 8,588 11,826 Restructuring and acquisition charges -- -- -- Cost associated with debt redemption 8,855 2,040 1,648 Total non-interest expenses 97,339 88,483 94,490 Income from continuing operations before income taxes 14,019 15,885 15,271 Provision for income taxes 6,193 5,741 5,462 Income from continuing operations 7,826 10,144 9,809 Discontinued operations, net of tax * 9,816 8,364 7,400 Extraordinary items, net of tax -- -- -- Cumulative accounting change, net of tax -- -- -- GAAP net income (note 1) $17,642 18,508 17,209 Reconciliation of Operating and GAAP Income from continuing operations GAAP income from continuing operations $7,826 10,144 9,809 Restructuring and acquisition charges -- -- -- Costs associated with debt redemption 5,756 1,326 1,071 Loss on mutual funds associated with acquired Gruntal deferred compensation plan -- -- -- Impairment of securities available for sale -- -- -- Operating net income (note 2) $13,582 11,470 10,880 * Primarily Levitt Corporation. BankAtlantic Bancorp, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) For The Three Months Ended (in thousands) 03/31/2003 12/31/2002 INTEREST INCOME: Interest and fees on loans and leases 53,540 56,086 Interest on securities available for sale 8,657 8,214 Interest and dividends on investment and trading securities 7,368 9,208 Total interest income 69,565 73,508 INTEREST EXPENSE: Interest on deposits 11,169 14,256 Interest on advances from FHLB 15,316 15,960 Interest on short-term borrowed funds 819 744 Interest on long-term debt 4,421 5,503 Capitalized interest on real estate developments (339) -- Total interest expense 31,386 36,463 NET INTEREST INCOME 38,179 37,045 Provision (recovery) for loan losses 850 3,291 NET INTEREST INCOME AFTER PROVISION 37,329 33,754 NON-INTEREST INCOME: Service charges on deposits 8,558 9,245 Other service charges and fees 3,918 3,841 Broker/dealer revenue and other commissions 51,665 41,468 Securities activities, net 384 (27) Impairment of securities -- (342) Gain on sales of loans 3 2,066 Income from real estate operations 1,086 -- Income from unconsolidated subsidiaries 82 643 Other 2,381 2,195 Total non-interest income 68,077 59,089 NON-INTEREST EXPENSES: Employee compensation and benefits 57,412 46,829 Occupancy and equipment 9,738 10,436 Advertising and promotion 2,807 3,267 Professional fees 3,115 2,038 Communications 3,829 3,155 Floor broker and clearing fees 2,158 2,462 Other 9,501 8,639 Restructuring and acquisition charges -- -- Cost associated with debt redemption -- 3,125 Total non-interest expenses 88,560 79,951 Income from continuing operations before income taxes 16,846 12,892 Provision for income taxes 6,028 4,133 Income from continuing operations 10,818 8,759 Discontinued operations, net of tax* 3,540 9,307 Extraordinary items, net of tax -- -- Cumulative accounting change, net of tax -- -- GAAP net income (note 1) 14,358 18,066 Reconciliation of Operating and GAAP Income from continuing operations GAAP income from continuing operations 10,818 8,759 Restructuring and acquisition charges -- (1,300) Costs associated with debt redemption -- 2,031 Loss on mutual funds associated with acquired Gruntal deferred compensation plan -- -- Impairment of securities available for sale -- 222 Operating net income (note 2) 10,818 9,712 * Primarily Levitt Corporation. BankAtlantic Bancorp, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) For the Years Ended (in thousands) 12/31/2003 12/31/2002 INTEREST INCOME: Interest and fees on loans and leases 208,674 223,589 Interest on securities available for sale 24,313 42,406 Interest and dividends on investment and trading securities 30,090 39,611 Total interest income 263,077 305,606 INTEREST EXPENSE: Interest on deposits 36,189 62,777 Interest on advances from FHLB 57,299 62,412 Interest on short-term borrowed funds 2,914 6,546 Interest on long-term debt 19,236 19,375 Capitalized interest on real estate developments (1,193) -- Total interest expense 114,445 151,110 NET INTEREST INCOME 148,632 154,496 Provision (recovery) for loan losses (547) 14,077 NET INTEREST INCOME AFTER PROVISION 149,179 140,419 NON-INTEREST INCOME: Service charges on deposits 40,569 26,479 Other service charges and fees 19,318 14,087 Broker/dealer revenue and other commissions 207,788 130,738 Securities activities, net (1,553) 8,578 Impairment of securities -- (18,801) Gain on sales of loans 122 1,840 Income from real estate operations 5,642 -- Income from unconsolidated subsidiaries 425 1,293 Other 9,403 7,535 Total non-interest income 281,714 171,749 NON-INTEREST EXPENSES: Employee compensation and benefits 226,940 166,979 Occupancy and equipment 40,036 39,196 Advertising and promotion 12,725 10,447 Professional fees 16,312 7,527 Communications 13,783 10,152 Floor broker and clearing fees 9,227 8,192 Other 37,306 32,417 Restructuring and acquisition charges -- 5,932 Cost associated with debt redemption 12,543 3,125 Total non-interest expenses 368,872 283,967 Income from continuing operations before income taxes 62,021 28,201 Provision for income taxes 23,424 9,051 Income from continuing operations 38,597 19,150 Discontinued operations, net of tax* 29,120 22,543 Extraordinary items, net of tax -- 23,749 Cumulative accounting change, net of tax -- (15,107) GAAP net income (note 1) 67,717 50,335 Reconciliation of Operating and GAAP Income from continuing operations GAAP income from continuing operations 38,597 19,150 Restructuring and acquisition charges -- 3,905 Costs associated with debt redemption 8,153 2,031 Loss on mutual funds associated with acquired -- Gruntal deferred compensation plan -- 1,493 Impairment of securities available for sale -- 12,220 Operating net income (note 2) 46,750 38,799 * Primarily Levitt Corporation. BankAtlantic Bancorp, Inc. and Subsidiaries Consolidated Statements of Financial Condition (unaudited) (In thousands, except share data) 12/31/2003 12/31/2002 ASSETS Cash and due from depository institutions $119,882 200,600 Securities purchased under resell agreements and federal funds -- 50,145 Securities available for sale (at fair value) 358,511 707,858 Securities owned (at fair value) 124,565 186,454 Investment securities and tax certificates (approximate fair value: $192,706 and $212,698) 192,706 212,240 Loans receivable, net of allowance for loan losses of $45,595 and $48,022 3,686,153 3,372,630 Federal Home Loan Bank stock, at cost which approximates fair value 40,325 64,943 Accrued interest receivable 27,866 33,984 Real estate held for development and sale 21,803 200,186 Investments and advances in unconsolidated subsidiaries 7,910 112,596 Office properties and equipment, net 93,577 92,699 Deferred tax asset, net 22,999 35,316 Goodwill 76,674 78,612 Core deposit intangible asset 11,985 13,757 Other assets 46,593 58,991 Total assets $4,831,549 5,421,011 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits Interest free checking $645,036 462,718 NOW accounts 533,888 399,985 Savings accounts 208,966 163,641 Insured money fund savings 865,590 775,175 Certificate accounts 804,662 1,119,036 Total deposits 3,058,142 2,920,555 Advances from FHLB 782,205 1,297,170 Securities sold under agreements to repurchase 138,809 116,279 Subordinated debentures, notes and bonds payable 36,595 193,816 Guaranteed preferred beneficial interests in Company's Junior Subordinated Debentures -- 180,375 Junior subordinated debentures 263,266 -- Securities sold not yet purchased 37,813 38,003 Due to clearing agent 8,583 78,791 Other liabilities 92,684 126,688 Total liabilities 4,418,097 4,951,677 Stockholders' equity: Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued and outstanding -- -- Class A common stock, $.01 par value, authorized 80,000,000 shares; issued and outstanding 54,396,824 and 53,441,847 shares 544 534 Class B common stock, $.01 par value, authorized 45,000,000 shares; issued and outstanding 4,876,124 and 4,876,124 shares 49 49 Additional paid-in capital 259,770 252,699 Unearned compensation - restricted stock grants (1,178) (1,209) Retained earnings 148,311 213,692 Total stockholders' equity before accumulated other comprehensive income 407,496 465,765 Accumulated other comprehensive income 5,956 3,569 Total stockholders' equity 413,452 469,334 Total liabilities and stockholders' equity $4,831,549 5,421,011