Related Parties

6 Months Ended

Jun. 30, 2011

Related Parties

Related Parties

9.   Related Parties

The Company, BFC and Bluegreen Corp. ("Bluegreen") may be deemed to be under common control.  The controlling shareholder of the Company and Bluegreen is BFC.  Shares of BFC's capital stock representing a majority of the voting power are owned or controlled by the Company's Chairman and Vice Chairman, both of whom are also directors of the Company, executive officers and directors of BFC and directors of Bluegreen. The Company, BFC and Bluegreen share certain office premises and employee services, pursuant to the agreements described below.

In March 2008, BankAtlantic entered into an agreement with BFC to provide information technology support in exchange for monthly payments by BFC to BankAtlantic. In May 2008, BankAtlantic also entered into a lease agreement with BFC under which BFC pays BankAtlantic monthly rent for office space in BankAtlantic's corporate headquarters. 

The Company maintains service agreements with BFC pursuant to which BFC provides human resources, risk management and investor relations services to the Company.  BFC is compensated for these services based on its cost. 

During the second quarter of 2010, BankAtlantic and the Parent Company entered into a real estate advisory service agreement with BFC for assistance relating to the work-out of loans and the sale of real estate owned.  BFC is compensated $12,500 per month by each of BankAtlantic and the Parent Company and, if BFC's efforts result in net recoveries of any non-performing loan or the sale of real estate owned, it will receive a fee equal to 1% of the net value recovered. During the three and six months ended June 30, 2011, the Company incurred $0.2 million and $0.3 million, respectively, of real estate advisory service fees under this agreement.

The table below shows the effect of service arrangements with related parties on the Company's consolidated statements of operations for the three and six months ended June 30, 2011 and 2010 (in thousands):

		For the Three Months Ended		For the Six Months Ended
		June 30,		June 30,
		2011	2010	2011	2010
Non-interest income:	$	93	148	210	289
Non-interest expense:
Employee compensation
and benefits		(16)	(25)	(32)	(46)
Other - back-office support		(574)	(675)	(972)	(1,167)
Net effect of affiliate transactions
before income taxes	$	(497)	(552)	(794)	(924)

The Company, in prior periods, issued options to acquire shares of the Company's Class A Common Stock to employees of BFC. Additionally, employees of the Company have transferred to affiliate companies and the Company has elected, in accordance with the terms of the Company's stock option plans, not to cancel the stock options held by those former employees.  The Company also issues options and restricted stock awards to BFC employees that perform services for the Company.  During the year ended December 31, 2010, the Company granted 75,000 restricted Class A Common Stock awards to BFC employees that perform services for the Company. These stock awards vest pro-rata over a four year period.  The Company recorded $16,000, and $32,000 of expenses relating to all options and restricted stock awards held by employees of affiliated companies for the three and six months ended June 30, 2011,  compared to expenses of $25,000 and $46,000 during the three and six months ended June 30, 2010, respectively.   

Options and non-vested restricted stock outstanding to BFC employees consisted of the following as of June 30, 2011:

	Class A		Weighted
	Common		Average
	Stock		Price
Options outstanding	35,003	$	62.21
Non-vested restricted stock	56,250		-

BFC had deposits at BankAtlantic totaling $0.9 million and $1.8 million as of June 30, 2011 and December 31, 2010, respectively. The Company recognized nominal interest expense in connection with the above deposits. These deposits were on the same general terms as offered to unaffiliated third parties.