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SECURITIES AND EXCHANGE COMMISSION
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Florida
34-027228
65-0507804
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
2100 West Cypress Creek Road
Ft. Lauderdale, Florida
33309
(Address of principal executive offices)
(Zip Code)
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))
BANKATLANTIC BANCORP, INC.
By:
/s/ Valerie C. Toalson
Valerie C. Toalson
Chief Financial Officer
NYSE
BBX
May 16, 2008
Prepared:
MAY 2008
NYSE
BBX
2
(NYSE:BBX)
Assets1 $6.4 Billion
Equity Capital1 $434 Million
Market Capitalization2 $136 Million
Tangible Book Value/Share3 $6.39
Price to Tangible Book2 0.38x
1At 3/31/08
2Based on $2.42 per share closing price on 5/15/08 and outstanding shares as of 3/31/08
3Tangible book is defined as stockholders' equity before accumulated other comprehensive income less
intangible assets divided by shares outstanding at 3/31/08
BANKATLANTIC BANCORP
12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 5/15/08
Price to book* 1.99x 2.55x 1.65x 1.61x 0.50x 0.31x
BANKATLANTIC BANCORP
STOCK PERFORMANCE
*Book value per share at given date divided by market value per share at given date
(12/31/02 - 5/15/08)
4
OVERVIEW
Founded in 1952
"Florida's Most Convenient Bank"
Second largest bank headquartered in Florida
Over 100 stores
Operates in top 6 counties in Florida
BANKATLANTIC
5
STRATEGY
Increase Core Deposits by:
Florida's Most Convenient Bank initiative
Strong service, sales and marketing culture
"WOW!" Customer Experience
Managed loan growth in Consumer, Small Business,
Commercial Real Estate and Corporate sectors
Improve operational efficiency
Maintain capital strength
Improve operating earnings
BANKATLANTIC
6
FOOTPRINT
BANKATLANTIC
Excludes Orlando stores, pending 2Q08 sale
7
BankAtlantic Deposits
(In millions)
BankAtlantic
Market Share
1Sale pending
2as of 3/31/08
As of 12/31/07; Source: Florida Banker's Assoc.
MARKET SHARE
Broward (Fort Lauderdale) $1,716 26 5.1%
Palm Beach / Treasure Coast $1,206 31 2.9%
Miami-Dade $702 25 1.1%
Tampa Bay $299 19 0.7%
Central Florida1 $23 4 0.1%
BankAtlantic Footprint $3,946 105 3.3%
BANKATLANTIC
# of Stores2
8
FLORIDA MARKET OVERVIEW
BANKATLANTIC
Florida is #3 in national
deposits at $369 billion
Florida Labor Market
4.5% unemployment rate (lower
than national average)
Small Business friendly
No personal income tax
Diverse mix of industries
Hub to international trade with
Latin America and Caribbean
2000-2007 Population Growth Rate 2007-2011 Population Growth Rate Unemployment Rate as of February 2008
BankAtlantic 0.1822 0.128 0.045
U.S. 0.0886 0.0626 0.048
Source: SNL Financial; CNN Money.com 2008
Florida
U.S.
9
BANKATLANTIC
FLORIDA DEPOSIT RANKING*
Institution
Branches
Deposits ($ in Billions)
*Other institution's branch & deposit data as of 12/3107; BankAtlantic's as of 3/31/08 Source: Florida Banker's Assoc.
1. Wachovia 736 $75.8
2. Bank of America 735 65.7
3. SunTrust 560 35.9
4. Regions 461 14.8
5. Washington Mutual 275 11.2
6. Colonial 204 10.5
7. BankUnited 77 7.2
8. Fifth Third 154 7.1
. . .
. . .
. . .
. . .
13. BankAtlantic 105 $4.0
10
2008 STRATEGIC INITIATIVES
IMPROVE CORE OPERATING
PERFORMANCE
MANAGE CREDIT QUALITY
MAINTAIN CAPITAL STRENGTH
BANKATLANTIC
11
2008 STRATEGIC INITIATIVES
IMPROVE CORE OPERATING
PERFORMANCE
MANAGE CREDIT QUALITY
MAINTAIN CAPITAL STRENGTH
BANKATLANTIC
12
Savings5% DDA14% NOW12% MMKT26% CDs43%
East 140961 398401 327999 750299 1230013
DEPOSIT MIX
Savings14% DDA22% NOW24% MMKT15% CDs25%
East 566448 854761 926381 609062 992078
Core Deposits = 60%
Average Balances
1Includes Public & Brokered CDs
*Average balances for three months ended 3/31/08
Core Deposits = 30%
Cost of Core Deposits = 0.80%
BANKATLANTIC
13
CORE DEPOSIT GROWTH
CORE DEPOSITS*
4Q07 2305
1Q08 2413
Period-end Balances, in millions
*DDA, NOW, Savings
First Quarter 2008
Up $108mm
+4.7%
BANKATLANTIC
14
TOTAL DEPOSITS
2002 2003 2004 2005 2006 2007 1Q08
Total Deposits 2.920555 3.058142 3.457202 3.752676 3.867036 3.953405 3.995614
Compound Growth 6.1%
Cost of Deposits
2.20%
1.23%
0.88%
Period-end Balances, Billions
1.10%
2.2%
1.55%
1.1%
2.13%
1.89%
BANKATLANTIC
15
2005 2006 2007 2008 Projected
Core Deposits 4 17 32 36
NEW STORES OPENED*
*Since 2005; 35 stores as of 1Q08
(CUMULATIVE)
STORE EXPANSION PROGRAM
**DDA, NOW, Savings
Mar-06 Mar-07 Mar-08
Core Deposits** 25514 135897 274173
Total Deposits 54882 227479 412010
Period End Balances, $ in Thousands
NEW STORE DEPOSITS
BANKATLANTIC
16
2002 2003 2004 2005 2006 2007 1Q08
Fee Income 53317 70686 85724 100060 131844 143882 35553
NON-INTEREST INCOME
Dollars in Thousands
9.1%
Compound Growth 22.0%
(2002-2007)
BANKATLANTIC
17
Purchased Residential $2,120 46.4% 5.49%
Commercial Real Estate 1,271 27.8% 5.99%
Consumer 724 15.9% 5.84%
Small Business 319 7.0% 7.38%
Corporate 130 2.9% 7.72%
Total Loans $4,564 100% 5.88%
3/31/08
% of
Total
Yield
Period-end Balances, Millions
LOAN PORTFOLIO
BANKATLANTIC BANCORP
18
Mortgage Backed Securities $592 54% 5.50%
CMO's 186 17% 5.28%
Tax Certificates 159 14% 8.26%
FHLB Stock 77 7% 6.00%
Other 84 8% 1.68%
Total Investment Portfolio
$1,098
100%
5.88%
3/31/08
% of Total
Period-end Balances, Millions
INVESTMENT PORTFOLIO
The MBS & CMO holdings consist entirely of agency backed securities.
The portfolio does not include any collateralized loan obligations,
collateralized debt obligations, asset backed commercial paper or
structured investment vehicle holdings.
Yield
BANKATLANTIC
19
1Q'07 2Q'07 3Q'07 4Q'07 1Q'08
NIM 0.0378 0.0372 0.0359 0.0341 0.0337
NET INTEREST MARGIN1
1The tax equivalent basis is computed using a 35% tax rate
QUARTERLY
4 bps
6 bps
12 bps
26 bps
27 bps
Impact of Commercial RE Non-accrual Loans
BANKATLANTIC
20
1Q'07 4Q'07 1Q'08
Non-interest Expense 78770 81581 68626
NON-INTEREST EXPENSE
BANKATLANTIC
21
Focus on sales & service disciplines and core deposit
growth
Commitment to overall expense reduction efforts as
part of a multi-year program
Earnings improvement, pre-tax and pre-loan provision
Up $13 million or 647% in 1Q2008 compared to
4Q2007
Up $7 million or 79% in 1Q2008 compared to
1Q2007
Core Operating Performance
Key 1Q2008 Actions
BANKATLANTIC
22
INCOME STATEMENT
Net Interest Income
$52,070
$47,291 $48,005
Non-Interest Income $35,047
$36,290 $35,553
Non-Interest Expense $78,770 $81,581 $68,626
Pre-tax Earnings
(before Provision for Loan Loss) $8,347 $2,000 $14,932
1Q07
4Q07
1Q08
Dollars in Thousands
Loan Loss Provision ($7,461) ($9,515) ($42,888)
Pre-Tax Income (Loss) $886 ($7,515) ($27,956)
Tax Provision (Benefit) $247 ($4,143) ($10,975)
Net Income (Loss) $639 ($3,372) ($16,981)
BANKATLANTIC
23
2008 STRATEGIC INITIATIVES
IMPROVE CORE OPERATING
PERFORMANCE
MANAGE CREDIT QUALITY
MAINTAIN CAPITAL STRENGTH
BANKATLANTIC
24
2005 2005 2006 2007 1Q 2008 1Q 2008
Non Performing Assets/Loans & Other Assets 0.17% 0.17% 0.55% 4.10% 4.10% 1.67% 1.67%
Annualized Net Charge-offs / (Recoveries) to Avg. Loans O/S
-0.04% -0.04% 0.13% 0.44% 0.44% 4.06% 4.06%
Loan Loss Reserve / NPL 605.68% 605.68% 982.89% 52.65% 52.65% 149.48% 149.48%
ASSET QUALITY
BANKATLANTIC
25
As of 3/31/08
ALLOWANCE FOR LOAN LOSSES
Consumer Loans $15,716 2.17 % 359%
Residential $4,523 0.21 % 30%
Small Business $5,085 1.59 % 570%
Commercial Non-RE $2,174 1.67 % N/A
Commercial RE $55,898 4.98 % 158%
TOTAL BANK
$83,396
1.86 %
149%
Reserve
% of O/S*
Dollars in Thousands
% of NPL**
*O/S = Outstanding Loans
**NPL = Non-performing Loans
BANKATLANTIC
26
COMMERCIAL REAL ESTATE SUMMARY
as of 3/31/08
$ in millions Total Non-Accrual
Builder land bank loans $79.2 $31.6
Land A&D loans 175.3 $3.8
Land AD&C loans 91.2 $0
Total Land AD&C Portfolio $345.7 $35.4
Other CRE loans 823.8 0
Total CRE loans $1,169.5 $35.4
BANKATLANTIC
27
Residential $8,678 $8,500 ($624) ($1,413) - $15,141
Commercial 165,818 13,548 (40,591) (1,900) (101,493) 35,382
Small Business 877 1,212 (1,196) - - 893
Consumer 3,218 5,992 (4,836) - - 4,374
Total Non-accrual Loans $178,591 29,252 (47,247) (3,313) (101,493) $55,790
Balance
12/31/07
Transfers
to REO
New Sub
Transfer
Period-end Balances, Thousands
BANKATLANTIC
1Q 2008 NON-ACCRUAL LOAN ACTIVITY
Charge-offs
Net New
Non-accrual
Loans
Balance
3/31/08
In March 2008, the Parent entity created a wholly-owned subsidiary,
separate from BankAtlantic. BankAtlantic sold at net book value $95.1
million of loans, net of $6.4 million of reserves to the workout sub, for
cash.
28
BankAtlantic
BankAtlantic
Bancorp
Workout Sub
BANKATLANTIC BANCORP
ASSET WORKOUT SUBSIDIARY
29
BANKATLANTIC BANCORP
TRANSFER OF NPAs TO WORKOUT SUBSIDIARY
Results of new sub/transfer of loans:
Reduces BankAtlantic's non-performing loans
Strengthens BankAtlantic's loan reserve coverage
Strengthens BankAtlantic's capital ratios
Allows cash to be used by the Bank
Allows analysts better insight into core operations of the Bank
Allows isolation of the assets into the workout subsidiary for
consideration of other alternatives in the future
No impact to consolidated financials
30
Sold loans externally and internally to workout sub
Decreased overall non performing loans in 1Q 2008
Improved loan reserve coverage
Froze certain HELOC lines
Further tightened underwriting standards on HELOC
CREDIT
Key 1Q2008 Actions
BANKATLANTIC
31
2008 STRATEGIC INITIATIVES
IMPROVE CORE OPERATING
PERFORMANCE
MANAGE CREDIT QUALITY
MAINTAIN CAPITAL STRENGTH
BANKATLANTIC
32
CAPITAL RATIOS
as of March 31, 2008
OTS "Well
Capitalized" Minimum Requirements BankAtlantic (Bank Only) Ratios BankAtlantic Bancorp Ratios*
Leverage 5.0% 6.87% 6.88%
Tier 1 6.0% 10.04% 9.96%
Total 10.0% 11.83% 15.79%
Excess Total Capital over minimum requirement $76.3 million $250.6 million
*Regulatory capital requirements do not apply to a unitary thrift holding company
33
Core (pre-loan provision) earnings improvement at the
Bank
Slowed earning asset growth; transfer of non-
performing loans to Parent workout subsidiary
$20 million capital contribution by Parent in 1Q08;
additional Parent sources available as necessary
April 2008 Shelf Registration filed - $100 million
Additional authorized shares of common stock
submitted for shareholder approval (pending 5/20/08
vote)
CAPITAL
Key 1Q2008 Actions
34
BankAtlantic
Bancorp
35
BANKATLANTIC BANCORP
Sale of a portion of Stifel stock; liquidation of certain
other Parent Company investments
Creation of loan workout subsidiary; transfer of
approx $95 million in net loans at net book value out
of BankAtlantic into the new subsidiary
Capital contribution from Bancorp to BankAtlantic of
$20 million; filed $100 million shelf registration
statement in April 2008
First Quarter 2008 Events
36
BANKATLANTIC BANCORP
Parent Company Liquidity - 3/31/08
Fair Value, $ in millions
Cash, equities and other investments $34.5
Stifel common stock and warrants $21.3
Total Parent Company liquidity $55.8
Potential near-term uses:
Parent company expenses, contingency funds for debt service
Capital injection to BankAtlantic
Liquidity cushion
Other investments
37
STOCK PERFORMANCE
BBX S&P 500
2007 Performance -69.64 % 5.60 %
2008 YTD Performance* -40.90 % -2.28 %
BANKATLANTIC BANCORP
*as of 5/15/08 close
BBX Stock Price* $2.42
Price to Tangible Book* 0.38x
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 a sustained downturn 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; the asset workout subsidiary's ability to successfully manage the process of debt resolution, if at all, or
producing results which do not justify their costs; and the successful completion of a sale or joint venture of its interests in the subsidiary in
the future, and the risk that no gain will be realized; 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; 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 producing results which do not justify their costs; the success of our expense discipline
initiative and the ability to achieve additional cost savings; the success of BankAtlantic's new 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 intangible assets for impairment. Past performance, actual or estimated new account openings and growth may not be
indicative of future results. Additionally, we acquired a significant investment in Stifel Financial Corp. ("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 Holdings, Inc. 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.
..
38
FORWARD-LOOKING INFORMATION
39
40
SUPPLEMENTAL
DATA
41
INCOME STATEMENT
Net Interest Income
$219,605
$199,510 $48,005
Non-Interest Income $131,844
$143,882 $35,553
Non-Interest Expense $293,448 $313,368 $68,626
Pre-tax Earnings
(before Provision for Loan Loss) $58,001 $30,024 $14,932
Loan Loss Provision ($8,574) ($70,842) ($42,888)
Pre-Tax Income (Loss) $49,427 ($40,818) ($27,956)
Tax Provision (Benefit) $13,105 ($21,378) ($10,975)
Net Income (Loss) $36,322 ($19,440) ($16,981)
2006
2007
1Q08
Dollars in Thousands
BANKATLANTIC
42
Core Deposits $2,413 43.0%
Other Deposits 1,583 28.3%
FHLB Advances 1,477 26.3%
Short term Borrowings 108 1.9%
Long Term Debt 26 0.5%
Total Funding $5,607 100.0%
3/31/08
% of
Total
Period-end Balances, Millions
DEPOSITS & FUNDING
BANKATLANTIC
43
2004 2005 2006 2007 1Q08
Deposit Cost of Funds
(including impact of free funding from DDAs) 0.88% 1.10% 1.55% 2.13% 1.89%
Borrowing Cost of Funds
(other interest bearing liabilities) 3.45% 4.13% 5.29% 5.34% 4.15%
Total Cost of Funds 1.59% 2.19% 2.66% 3.05% 2.55%
3 Month LIBOR 1.62% 3.57% 5.20% 5.30% 3.29%
FUNDING COSTS
BANKATLANTIC
44
PURCHASED RESIDENTIAL PORTFOLIO
3/31/08 Outstandings: $ 2.1 billion
3/31/08 Non-Accrual loans: $ 13.2 million
2008 Gross Charge-offs $ 0.6 million
No sub-prime loans
No negative amortizing loans or option arms
Purchase "A" quality paper only
Geographically diverse; concentration limits by state
Avg. loan balance approximately $300 thousand
Weighted averages at origination: LTV 68.0%; FICO 743
Delinquency 1.17% at 3/31/08
BANKATLANTIC
45
COMMERCIAL REAL ESTATE LOAN PORTFOLIO
3/31/08 Outstandings: $ 1.3 billion
3/31/08 Non-Accrual loans: $ 35.4 million
2008 Gross Charge-offs $ 40.6 million
Loan to cost / recourse / footprint lender
Average LTV/LTC estimated 75% - 80% at origination
Average note outstanding $3.6 Million
No high rise condo exposure
BANKATLANTIC
46
CONSUMER LOAN PORTFOLIO
3/31/08 Outstandings: $ 724 million
3/31/08 Non-Accrual loans: $ 4.4 million
2008 Gross Charge-offs $ 4.8 million
Over 97% Home Equity Lines of Credit (HELOC's)
Updated weighted average Loan to Value 74%
Updated weighted average BEACON score of 737
Approx 80% secured by second mortgages
Centralized underwriting; self-originated
Avg. loan balance approx. $52 thousand (excluding zero balance
accts)
Delinquency 1.76% at 3/31/08
BANKATLANTIC
47
SMALL BUSINESS LENDING PORTFOLIO
12/31/07 Outstandings: $ 319 million
12/31/07 Non-Accrual loans: $ 0.9 million
2007 Gross Charge-offs $ 1.2 million
Recourse / footprint lender
Centralized underwriting and approval
Avg. loan balance approximately $117 thousand
Delinquency 0.76% at 3/31/08
BANKATLANTIC
48
Total Assets $6.4 Billion Billion
Total Deposits $4.0 Billion Billion
Total Loans (Net) $4.5 Billion Billion
Income from Continuing Ops (a) ($24.6) Million Million
EPS from Continuing Ops (a) ($0.44)
BANKATLANTIC BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
For the quarter ended March 31, 2008
Income before discontinued operations and extraordinary items as shown on slide #51
(b) GAAP Income from Continuing Operations adjusted for the items shown on slide #51
49
Revenue:
1Q08 $73.3 Million
Operating Net Income: 1
1Q08 ($24.6) Million
BANKATLANTIC BANCORP
Revenue:
1Q08 $83.6 Million
Operating Net Income:
1Q08 ($17.0) Million
BankAtlantic
1GAAP Income from Continuing Operations adjusted as shown on slide #51
Revenue:
1Q08 ($10.0) Million
Operating Net Income:
1Q08 ($7.6) Million
Parent Company
50
KEY FINANCIAL TRENDS
Income from continuing operations1 ($ in millions)
$53.3 $42.5 $26.9 ($30.0) ($24.6)
Operating net income2 ($ in millions)
$46.1 $54.9 $26.8 ($30.0) ($24.6)
Return on Tangible Equity from Cont. Ops1
15.07% 10.07% 6.00% -6.95% -25.73%
Operating Return on Tangible Equity2 13.05% 13.01% 5.98% -6.95% -25.73%
BANKATLANTIC BANCORP
1Income before discontinued operations, as shown on slide #51
2GAAP Income from Continuing Operations adjusted as shown on slide #51
FY04
FY05
1Q08
FY06
FY07
51
RECONCILIATION OF GAAP, CONTINUING OPERATIONS
AND OPERATING EARNINGS
NET INCOME (GAAP) $70,768 $59,182 $ 15,387 ($22,200) ($23,443)
(Income)/Loss from disc. ops. (17,483) (16,656) 11,492 $7,812 $1,121
INCOME FROM CONTINUING OPERATIONS $53,285 $42,526 $26,879
($30,012)
($24,564)
Losses/(Gains) from debt redemption 7,632 (46)
Reserve for compliance deficiencies 10,000
Litigation (14,785)
Bank facilities impairment 2,409
OPERATING NET INCOME $46,132 $54,935 $26,833 ($30,012) ($24,564)
DILUTED: EPS GAAP $1.11 $0.92 $0.25 ($0.38) ($0.42)
DILUTED: EPS CONTINUING OPERATIONS $0.85 $0.67 $0.43 ($0.52) ($0.44)
DILUTED: EPS OPERATING NET INCOME $0.73 $0.87 $0.43 ($0.52) ($0.44)
FY 2004
FY 2005
FY 2006
FY 2007
1Q08
Dollars in Thousands, except for EPS
BANKATLANTIC BANCORP
52
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