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BankAtlantic Bancorp Reports Financial Results For the Second Quarter, 2008
21% Improvement Compared to First Quarter, 2008
FORT LAUDERDALE, Fla., Jul 29, 2008 (BUSINESS WIRE) -- BankAtlantic Bancorp, Inc. (NYSE:BBX) today reported a net loss from continuing operations of ($19.4) million, or ($0.35) per diluted share for the quarter ended June 30, 2008, representing a 21.2% improvement compared to the net loss of ($24.6) million or ($0.44) per diluted share for the first quarter of 2008. BankAtlantic Bancorp ("the Company") reported net income of $11.7 million, or $0.20 per diluted share, for the second quarter of 2007.

BankAtlantic, the banking subsidiary of BankAtlantic Bancorp, reported a net loss of ($14.1) million for the quarter ended June 30, 2008 compared to a net loss of ($17.0) million for the first quarter of 2008, a 17.2% improvement, and net income of $10.4 million for the second quarter of 2007. BankAtlantic's second quarter 2008 pre-tax core operating earnings (defined as pre-tax earnings before the impact of loan loss provisions, impairment, restructuring and exit activities) was $20.3 million, versus $17.2 million in the comparable 2007 period, an 18% improvement. BankAtlantic's second quarter 2008 pre-tax core operating earnings rose 36.8%, up from $14.8 million in the first quarter of 2008. Loan loss provisions, impairment, restructuring and exit activity expenses aggregated $43.8 million in the second quarter of 2008, $6.0 million in the second quarter of 2007 and $42.8 million in the first quarter of 2008.

BankAtlantic Bancorp's Chairman and Chief Executive Officer, Alan B. Levan, commented, "It is generally hard to find good news in bad news but this is one of those circumstances. While there is no question that many of our loyal customers are hurting -- and their pain causes us pain -- we are beginning to see early signals that segments of the environment are stabilizing and upcoming and meaningful government support for the economy is materializing. We are hopeful that the healing process has begun for our customers and for us. Our core operating earnings are showing marked improvement and our aggressive recognition of credit issues when the tidal wave hit last year appears to be paying off. Also, while we clearly experienced significant credit losses, we are pleased that our decisions over the last few years to avoid many of the investments that have severely hurt so many institutions has left us better off than many banks and thrifts who are not only dealing with the kind of core credit issues we have, but are also having to address the market that now exists for exotic assets.

"Our desirable position in this awful market is not an accident. During its 56 years serving Florida, BankAtlantic has experienced and successfully navigated through a number of economic and real estate downturns. Despite the noise in some quarters driven by misinformation, bad information, and simply irresponsible reporting disconnected from fact, BankAtlantic, with its strong core of retail customers, is well positioned to emerge from the current economic downturn stronger, leaner, wiser and more profitable.

"The reported earnings reflect the financial results of BankAtlantic Bancorp, BankAtlantic's holding company. In light of the current volume of misinformation being circulated, it is important to note that it is our subsidiary, BankAtlantic, which enjoys federal deposit insurance. Our investment in that subsidiary financial institution is critical to BankAtlantic Bancorp's success. For the purpose of evaluating the safety and soundness of an insured entity, however, BankAtlantic is evaluated based on its own financials, independent from the consolidated financials of BankAtlantic Bancorp. We remain pleased to report on the financial condition of both our subsidiary as well as BankAtlantic Bancorp.

"As of June 30, 2008, BankAtlantic remains in every measurable category a 'well capitalized' institution under all regulatory standards. Its total risk based capital ratio is 11.77%, Tier 1 risk based capital ratio is 9.99%, tangible capital ratio is 6.82%, and core capital is 6.82%; all exceeding the 'well capitalized' standard for the respective capital ratios. Its ratio of non-performing loans to total loans is 1.75%, and its ratio of non-performing assets to its capital and reserves is 15.5%. While market conditions have driven those ratios higher than we would like, they are both better than industry averages today, and, we believe, represent a significant accomplishment considering the state of the Florida economy and the problems facing other institutions. BankAtlantic is sound, strong and has a long and bright future to look forward to, built on the high level of service it provides to its loyal customers in its dynamic retail network.

"BankAtlantic's residential lending practices have never included subprime, option-arm, negative amortization or similar products. We believe that is why BankAtlantic's $2.0 billion Residential loan portfolio has experienced net losses that appear to be significantly below standard industry comparison. In addition, BankAtlantic's investment portfolio does not include any commercial paper, collateralized debt obligations, structured investment vehicles, Fannie Mae or Freddie Mac equity or debt securities, or investments otherwise considered high-risk. The decisions to forego the potential profits earned by others on these types of investments have in the longer term proven wise.

"Early on, we recognized credit issues in certain segments of our loan portfolios. We believe that these issues are largely attributable to the economic downturn and the decline of the Florida residential real estate markets. We also believe that we have made significant progress since the start of the current real estate crisis through the second quarter of 2008. As is detailed below, net interest income, non-interest income and core operating earnings have all increased. Core deposits (DDA, NOW and Savings) have increased. Non-interest expenses have declined and charge-offs in commercial real estate have declined.

"BankAtlantic's internal capital projections indicate continued 'well capitalized' ratios without additional capital, even if it is necessary to absorb additional charge-offs. Having said that, and despite our belief that our government has and will use the tools to keep our economy from slipping significantly further, we are also planning for a worst case economic scenario we hope will never occur. Simply put, notwithstanding what likely will happen, we must plan for what could happen and for the most dire of circumstances affecting our customers.

"The time to raise capital is when you might need it but do not then need it. This is that time. Accordingly, we have decided to pursue raising additional capital through a shareholder rights offering of Common Stock to the Company's shareholders which we are publicly announcing today in a separate press release. Offering our stock directly to our existing shareholders at a discount to the market will give every shareholder the opportunity to participate and acquire shares on the same terms. We believe this is the fairest and most equitable approach for our current shareholders.

"We appreciate the support our company has enjoyed over the years from its customers, shareholders, and employees. As dark as it has been for the economy during this year, we have seen, survived and prospered through much worse. We will do so now as well, as we work to make certain that those who believe in the future of this company are rewarded for having done so."

BankAtlantic Highlights:

BankAtlantic Performance:

Net Income - BankAtlantic's Chief Executive Officer, Jarett S. Levan, commented, "Despite the losses associated with our loan portfolios, we have made significant progress in improving core operating earnings.

"Year-to-date, pre-tax core operating earnings, which exclude the impact of loan loss provisions and impairment, restructuring and exit activity, were $35.1 million versus $28.1 million at June 30, 2007, representing a 24.9% improvement. As stated above, the second quarter 2008 pre-tax core operating earnings were $20.3 million, a 36.8% improvement over $14.8 million reported for the first quarter of 2008. Loan loss provisions, impairment, restructuring, exit activity expenses and tax provisions, aggregated ($66.1) million and ($17.1) million for the six months ended June 30, 2008 and 2007, respectively, and ($34.3) million and ($31.8) million for the three months ended June 30, 2008 and March 31, 2008, respectively. Details for each period are provided in the supplementary financial statements included with this press release. We believe these improvements reflect management's success in reducing operating expenses and improving profitability in the core business in spite of the challenges in the current economic environment.

Deposit Accounts and Balances - "Over 75% of BankAtlantic's $3.9 billion in total deposits at June 30, 2008 is comprised of non-CD balances, which we believe speaks to the strength and stability of our deposit base and franchise. Total Bank core deposit balances, representing Demand, NOW and Savings accounts, increased $52.2 million year-to-date, compared to $109.6 million for the comparable 2007 period, which we believe is a result of the impact of the economic environment on our customers.

Net Interest Margin - "Net interest income for the second quarter of 2008 was $49.9 million compared to $48.0 million in the previous quarter and $50.9 million in the corresponding 2007 quarter. The tax equivalent net interest margin was 3.58% in the second quarter of 2008, up 21 basis points, compared to 3.37% in the first quarter of 2008, and 3.72% in the corresponding quarter of 2007. The decline from the 2007 quarter was due primarily to competitive pricing pressures in this interest rate environment and the impact of non-performing assets. Additionally, average earning assets decreased $99.8 million and $120.8 million compared to the first quarter of 2008 and the second quarter of 2007, respectively, due to our conscious decision to slow loan growth in support of capital preservation and credit risk management initiatives.

Non-interest income - "Non-interest income for the second quarter of 2008 was $36.7 million, a 3.3% increase over the first quarter of 2008 and essentially flat with the second quarter of 2007. Total non-interest income for the second quarter was 42% of total income. Approximately 67% of our non-interest income is generated directly by our deposit account base, representing what we believe is a consistent and stable source of income for BankAtlantic.

Non-interest expense - "We remain committed to a multi-year program to create a more efficient operating platform. Recurring non-interest expense in the quarter continued to show material improvement from prior periods, as we completed the early stages of this initiative. Year-to-date, excluding impairment, restructuring and exit activity charges of $5.8 million in 2008 and $3.7 million in 2007, non-interest expense improved $11.5 million or 7.8% from the 2007 year-to-date period. Excluding impairment, restructuring and exit activity charges of $1.1 million in the second quarter of 2007 and of $6.0 million in the second quarter of 2008, non-interest expense during the second quarter of 2008 was $66.4 million, a decline of $4.0 million or 5.7% from the comparable 2007 quarter. Excluding impairment, restructuring and exit activity recoveries of ($0.1) million in the first quarter of 2008 and charges of $6.0 million in the second quarter of 2008, non-interest expense during the second quarter of 2008 decreased $2.4 million or 3.4% from the first quarter of 2008. Total non-interest expense was $72.3 million in the second quarter of 2008, compared to $71.5 million in the second quarter of 2007 and $68.6 million in the first quarter of 2008.

"Through reductions in staff and normal attrition we have reduced headcount by 27.3% since January 2007. These expense reductions were achieved despite absorbing incremental direct expense, year-over-year, related to 31 new stores opened from 2005 to date and operating expenses associated with our recently sold Central Florida stores.

Credit Risk Management:

Credit - "BankAtlantic experienced net charge-offs of $22.8 million in the second quarter of 2008, representing a 51.6% improvement over first quarter 2008 net charge-offs. This was largely the result of the performance of our Commercial Real Estate portfolio, where net charge-offs for the second quarter of 2008 were $14.5 million ($13.8 million of which was related to one loan), an improvement of over $26.1 million compared to the $40.6 million charged-off in the first quarter of 2008. Non-accrual loans were re-appraised during the first half of this year and the valuation adjustments are reflected in these charge-offs and specific reserves. The quarter's net charge-offs also included Consumer loans of $7.1 million, Residential loans of $0.8 million, and Small Business loans of $0.3 million. Commercial business loans did not have any charge-offs in this quarter or in the comparable 2007 period.

"The provision for loan loss in the second quarter of 2008 was $37.8 million, as we increased our allowance for loan losses to a total of $98.4 million (representing 2.21% of total loans), primarily reflecting additional specific reserves in our Commercial Real Estate portfolio related to recent valuation updates and increases in our Consumer portfolio reserves. The allowance coverage of total non-accrual loans was 126.34% at June 30, 2008, and the ratio of non-performing loans to total loans at June 30, 2008 was 1.75%.

Commercial Real Estate Loans - "The Bank's Commercial Real Estate loan portfolio at June 30, 2008 totaled $1.3 billion, including the following loan categories which we believe have the most exposure to declines in the real estate market:

"Builder land bank loans: This category of 7 loans aggregates $64.0 million; 2 of the loans, totaling $17.6 million, are on non-accrual.

"Land acquisition and development loans: This category of 26 loans aggregates $172.3 million; one loan, totaling $3.2 million, is on non-accrual.

"Land acquisition, development and construction loans: This category of 18 loans aggregates $88.1 million; 3 of these loans, totaling $24.7 million, are on non-accrual.

"These non-accrual commercial real estate loans are reflected on the Bank's financial statements at approximately 50% of their principal balances before charge-offs or specific reserves. Additionally, we would note that these three loan categories that we identified in the third quarter of 2007 have been the source for 84% of the existing non-accrual commercial real estate loan balances and 99.7% of commercial real estate charge-offs since the third quarter of 2007. Further, loans identified in the third quarter 2007 as non-accrual have been the source of 79.2% of the total charge-offs since that time. We expect continued pressure on this portfolio throughout 2008, including the possibility of additional non-accrual loans, provisions and charge-offs. However, we believe the current trends in our Commercial Real Estate portfolio appear to be stabilizing.

Purchased Residential Loans - "Our Purchased Residential loan portfolio was $2.0 billion at quarter-end, representing 44.4% of the Bank's total loans. This portfolio consists of approximately 6,500 first mortgage loans secured by properties in every state of 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 with 92% located outside of Florida, 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 33.1%. As of June 30, 2008, the average time to payment reset was 61 months. Quarter-end delinquencies, including non-accrual loans, were 1.33% of the unpaid principal balance, versus 1.17% in the previous quarter. Non-accrual balances in this portfolio increased to $16.7 million at June 30, 2008 from $13.2 million at March 31, 2008. Based on more recently obtained property valuations, the weighted average loan-to-value of the non-accrual loan balances on June 30, 2008 was 74.8%, and the year-to-date annualized charge-offs remain low at 0.16%. While this portfolio is experiencing greater pressure than in the past, we believe that it remains a strong performing portfolio.

Consumer Loans - "Our Consumer loan portfolio had outstanding balances of $734.4 million at quarter-end, with home equity loans representing 96.4% 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 19% 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 74.4%, and an updated weighted average Beacon score of borrowers of approximately 737. Total delinquencies in this portfolio, including non-accruals, at June 30, 2008 were 2.17% versus 1.76% at March 31, 2008. Non-accrual balances in this portfolio were essentially flat at $4.5 million at June 30, 2008 compared to $4.4 million at March 31, 2008. During the first half of 2008, we decreased our consumer loan available commitments by $122.7 million in an effort to reduce overall exposure. Notwithstanding our efforts, based on current economic conditions, we anticipate that we will continue to experience elevated levels of delinquencies and charge-offs in this portfolio during the balance of the year.

Capital Strength:

Capital - "At June 30, 2008, BankAtlantic's Core, Tier I and Total Capital ratios were 6.82%, 9.99% and 11.77%, respectively, exceeding 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 15.5% at June 30, 2008. BankAtlantic Bancorp contributed $35.0 million in capital to BankAtlantic during the second quarter of 2008, and has contributed $55.0 million of capital year-to-date, offsetting the impact of the losses and further strengthening the Bank's already well-capitalized base.

"Florida remains one of the best banking markets in the country. We are positioned to take advantage of opportunities in this market as we emerge from this economic cycle with a more efficient operating platform and improved core operating earnings." concluded Jarett S. Levan.

Parent:

Stifel Investment - BankAtlantic Bancorp's Chairman and CEO, Alan B. Levan, further commented, "During the quarter, we completed the sale of all of our remaining shares of Stifel Financial Corp. common stock for proceeds of $15.7 million, representing a gain of $3.7 million. As a result of Stifel's recent three for two stock split, we currently hold warrants to purchase 722,586 shares of Stifel Financial Corp. common stock at an exercise price of $24.00 per share. BankAtlantic Bancorp recorded a $4.5 million gain associated with the change in value of the warrants in the second quarter of 2008, versus the $6.1 million gain recorded in the second quarter of 2007.

Asset Workout Subsidiary - "As previously announced, during the first quarter of 2008, BankAtlantic Bancorp formed a wholly-owned asset workout subsidiary. BankAtlantic transferred approximately $101.5 million of non-accrual loans and $6.4 million in specific loan reserves to the workout subsidiary on March 31, 2008 in exchange for a cash payment of $94.8 million. 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 (the Parent company) 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 June 30, 2008, the loans held by the workout subsidiary totaled $92.8 million with specific loan reserves of $7.7 million. During the second quarter, primarily as a result of updated valuations, these loans were charged-down by $8.2 million, and BankAtlantic Bancorp recorded a provision for loan losses of $9.4 million. Additionally, during the quarter, one loan for $2.4 million returned to accrual status. The breakdown of the non-accrual loans held by the Company's asset workout subsidiary is as follows:

"Builder land bank loans: Four loans aggregating $29.0 million.

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

"Land acquisition, development and construction loans: Nine loans aggregating $29.3 million.

"Other Commercial real estate loans: Three loans aggregating $7.0 million.

"Commercial business loans: Three loans aggregating $5.6 million.

"These commercial real estate non-accrual loans are carried on BankAtlantic Bancorp's books at approximately 63.3% 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.

BankAtlantic Bancorp:

Cash Dividend - "BankAtlantic Bancorp's Board of Directors declared a cash dividend of $0.005 per share to all shareholders of record of its Class A and Class B Common Stock at the close of trading on July 3rd, 2008. This quarter's dividend declaration marked BankAtlantic Bancorp's 60th consecutive quarterly dividend payment," concluded Alan B. Levan.

Financial Highlights:

Second Quarter, 2008 Compared to Second Quarter, 2007

BankAtlantic Bancorp - consolidated:

-- (Loss) income from continuing operations of ($19.4) million versus income of $11.7 million

-- Diluted (loss) earnings per share from continuing operations of ($0.35) versus $0.20

-- Return on average tangible equity from continuing operations was (21.63%) versus 10.47%

-- Book value per share was $7.27 versus $8.83

BankAtlantic:

-- Business segment (loss) income was ($14.1) million versus income of $10.4 million

-- Pre-tax operating earnings (pre-tax loss before impact of provision for loan losses, impairments, restructuring and exit activities of $43.8 million for the 2008 quarter and $6.0 million for the 2007 quarter) was $20.3 million versus $17.2 million

-- Over 40,000 new core deposit accounts opened

-- Return on average tangible assets was (0.94%) versus 0.68%

-- Return on average tangible equity was (12.06%) versus 8.26%

-- Tax equivalent net interest margin decreased to 3.58% versus 3.72%

-- Non-interest income remained flat at $36.7 million

-- Non-interest expense was $66.4 million versus $70.4 million, a decrease of 5.70%, before the impairment, restructuring and exit activities of $6.0 million in 2008 and $1.1 million in 2007

Second Quarter, 2008 Compared to First Quarter, 2008

BankAtlantic Bancorp - consolidated:

-- (Loss) from continuing operations of ($19.4) million versus ($24.6) million

-- Diluted (loss) per share from continuing operations of ($0.35) versus ($0.44)

-- Return on average tangible equity from continuing operations was (21.63%) versus (25.73%)

-- Book value per share was $7.27 versus $7.73

BankAtlantic:

-- Business segment (loss) was ($14.1) million versus ($17.0) million

-- Pre-tax operating earnings (pre-tax loss before impact of provision for loan losses, impairments, restructuring and exit activities of $43.8 million for the second quarter and $42.8 million for the first quarter) was $20.3 million versus $14.8 million

-- Return on average tangible assets was (0.94%) versus (1.12%)

-- Return on average tangible equity was (12.06%) versus (14.52%)

-- Tax equivalent net interest margin increased to 3.58% versus 3.37%

-- Non-interest income was $36.7 million versus $35.6 million

-- Non-interest expense was $66.4 million versus $68.7 million, a decrease of 3.43%, before the impairment, restructuring and exit activities of $6.0 million in the second quarter and a $0.1 million recovery during the first quarter

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

BankAtlantic Bancorp - consolidated:

-- (Loss) income from continuing operations was ($43.9) million versus income of $9.5 million

-- Diluted (loss) earnings per share from continuing operations was ($0.78) versus $0.16

-- Return on average tangible equity from continuing operations was (23.75%) versus 4.24%

BankAtlantic:

-- Business segment (loss) income was ($31.0) million versus income of $11.0 million

-- Pre-tax operating earnings (pre-tax loss before impact of provision for loan losses, impairments, restructuring and exit activities of $86.5 million year-to-date 2008 and $16.1 million year-to-date 2007) was $35.1 million versus $28.1 million

-- Nearly 103,000 new core deposit accounts opened

-- Return on average tangible assets was (1.03%) versus 0.36%

-- Return on average tangible equity was (13.29%) versus 4.39%

-- Non-interest income was $72.3 million versus $71.7 million, an increase of 0.77%

-- Non-interest expense, before the $5.8 million and $3.7 million of impairment, restructuring and exit activities during the 2008 and 2007 periods, was $135.1 million versus $146.6 million, a decrease of 7.8%

Financial data is provided in the supplemental financial tables included with this release for both BankAtlantic (bank only) as well as the Parent- BankAtlantic Bancorp. Additionally, BankAtlantic financial information is provided quarterly to the OTS through Thrift Financial Reports, available to the public through the OTS and FDIC websites.

BankAtlantic Bancorp plans to host an investor and media teleconference call and webcast on Wednesday, July 30, 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 54889866.

A replay of the conference call will be available beginning two hours after the call's completion through 5:00 p.m. Eastern Time, Wednesday, August 13, 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 54889866.

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=49472. The archive of the teleconference call will be available through 5:00 p.m. Eastern Time, Wednesday, August 13, 2008.

BankAtlantic Bancorp's second quarter, 2008 financial results press release and financial summary, as well as the Supplemental Financials (a detailed summary of significant financial events and extensive business segment financial data), will be available on its website at: www.BankAtlanticBancorp.com.

-- To view the financial summary, access the "Investor Relations" section and click on the "Quarterly Financials" navigation link.

-- To view the Supplemental Financials, access the "Investor Relations" section and click on the "Supplemental Financials" navigation link.

Copies of BankAtlantic Bancorp's second quarter, 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.

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.

BankAtlantic Bancorp Contact Info:
----------------------------------------------------------------------
Donna Rouzeau,
Assistant Vice President, Investor Relations &
 Corporate Communications
Email: CorpComm@BankAtlanticBancorp.com
Leo Hinkley,
Senior Vice President, Investor Relations Officer
Email: InvestorRelations@BankAtlanticBancorp.com

Phone: 954-940-5300, Fax: 954-940-5320
----------------------------------------------------------------------
Mailing Address: BankAtlantic Bancorp, Investor Relations
----------------------------------------------------------------------
2100 West Cypress Creek Road, Fort Lauderdale, FL 33309

BankAtlantic, "Florida's Most Convenient Bank," Contact Info:
----------------------------------------------------------------------
Public Relations:
----------------------------------------------------------------------
Hattie Hess, Vice President, Public Relations
Telephone: 954-940-6383, Fax: 954-940-6310
Email: hhess@BankAtlantic.com

Public Relations for BankAtlantic:
----------------------------------------------------------------------
Boardroom Communications
Caren Berg
Phone: 954-370-8999, Fax: 954-370-8892
Email: cberg@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, 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 on 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 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 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 increasing average balances of new deposit accounts 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 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.


             BankAtlantic Bancorp, Inc. and Subsidiaries
            Summary of Selected Financial Data (unaudited)



                                For the Three Months Ended
                    --------------------------------------------------

                    6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2007
                    --------- --------- ---------- --------- ---------

Earnings (in
 thousands):
  Net (loss)
   income from
   continuing
   operations      $ (19,363)  (24,564)    (9,926)  (29,610)    11,728
  Net (loss)
   income          $ (19,363)  (23,443)    (9,926)  (29,610)    11,620

Average Common
 Shares
 Outstanding (in
 thousands):
  Basic               56,117    56,097     56,054    56,832     59,190
  Diluted             56,117    56,097     56,054    56,832     59,929

Key Performance
 Ratios
  Basic (loss)
   earnings per
   share from
   continuing
   operations      $   (0.35)    (0.44)     (0.18)    (0.52)      0.20
  Diluted (loss)
   earnings per
   share from
   continuing
   operations      $   (0.35)    (0.44)     (0.18)    (0.52)      0.20
  Basic (loss)
   earnings per
   share           $   (0.35)    (0.42)     (0.18)    (0.52)      0.20
  Diluted (loss)
   earnings per
   share           $   (0.35)    (0.42)     (0.18)    (0.52)      0.19
  Return on
   average
   tangible assets
   from continuing
   operations
   (note 1)        %   (1.26)    (1.57)     (0.63)    (1.85)      0.74
  Return on
   average
   tangible equity
   from continuing
   operations
   (note 1)        %  (21.63)   (25.73)     (9.96)   (27.45)     10.47

Average Balance
 Sheet Data (in
 millions):
  Assets           $   6,235     6,350      6,354     6,479      6,407
  Tangible assets
   (note 1)        $   6,160     6,274      6,278     6,402      6,330
  Loans            $   4,571     4,642      4,654     4,693      4,678
  Investments      $   1,138     1,191      1,172     1,244      1,194
  Deposits and
   escrows         $   3,907     3,949      3,960     3,984      4,048
  Stockholders'
   equity          $     435       459        471       506        525
  Tangible
   stockholders'
   equity (note 1) $     358       382        399       431        448

                        For the Six
                        Months Ended
                    --------------------

                    6/30/2008 6/30/2007
                    --------- ----------

Earnings (in
 thousands):
  Net (loss) income
   from continuing
   operations        (43,927)      9,524
  Net (loss) income  (42,806)     17,336

Average Common
 Shares Outstanding
 (in thousands):
  Basic               56,107      59,908
  Diluted             56,107      60,922

Key Performance
 Ratios
  Basic (loss)
   earnings per
   share from
   continuing
   operations          (0.78)       0.16
  Diluted (loss)
   earnings per
   share from
   continuing
   operations          (0.78)       0.16
  Basic (loss)
   earnings per
   share               (0.76)       0.29
  Diluted (loss)
   earnings per
   share               (0.76)       0.28
  Return on average
   tangible assets
   from continuing
   operations (note
   1)                  (1.41)       0.30
  Return on average
   tangible equity
   from continuing
   operations (note
   1)                 (23.75)       4.24

Average Balance
 Sheet Data (in
 millions):
  Assets               6,292       6,423
  Tangible assets
   (note 1)            6,217       6,344
  Loans                4,607       4,644
  Investments          1,164       1,168
  Deposits and
   escrows             3,928       3,975
  Stockholders'
   equity                447         527
  Tangible
   stockholders'
   equity (note 1)       370         449


Note:
(1) Average tangible assets is defined as average total assets less
     average goodwill and core deposit intangibles.
    Average tangible equity is defined as average total stockholders'
     equity less average goodwill, core deposit intangibles and other
     comprehensive income.


             BankAtlantic Bancorp, Inc. and Subsidiaries
      Consolidated Statements of Financial Condition (unaudited)


                                               June 30,   December 31,
(in thousands, except share data)                2008         2007
                                             ------------ ------------
ASSETS
Cash and cash equivalents                   $    308,554       124,574
Securities available for sale (at fair
 value)                                          759,023       925,363
Investment securities (approximate fair
 value: $2,036 and $44,688)                        2,036        39,617
Financial instruments accounted for at fair
 value                                            13,257        10,661
Tax certificates net of allowance of $4,010
 and $3,289                                      416,084       188,401
Loans receivable, net of allowance for loan
 losses of $106,126 and $94,020                4,442,529     4,524,188
Federal Home Loan Bank stock, at cost which
 approximates fair value                          85,657        74,003
Real estate held for development and sale         23,254        33,741
Real estate owned                                 20,298        17,216
Office properties and equipment, net             222,484       243,863
Goodwill and other intangible assets              75,200        75,886
Other assets                                     146,599       121,304
                                             ------------ ------------
         Total assets                       $  6,514,975     6,378,817
                                             ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
  Demand                                    $    891,142       824,211
  NOW                                            939,714       900,233
  Savings                                        526,303       580,497
  Money market                                   621,899       624,390
  Certificates of deposit                        955,921     1,024,074
                                             ------------ ------------
Total deposits                                 3,934,979     3,953,405
Advances from FHLB                             1,657,036     1,397,044
Securities sold under agreements to
 repurchase                                       53,209        58,265
Federal funds purchased and other short
 term borrowings                                  75,000       108,975
Subordinated debentures and bonds payable         26,287        26,654
Junior subordinated debentures                   294,195       294,195
Other liabilities                                 66,063        80,958
                                             ------------ ------------
         Total liabilities                     6,106,769     5,919,496
                                             ------------ ------------
Stockholders' equity:
Common stock                                         562           561
Additional paid-in capital                       218,922       216,692
Retained earnings                                192,780       236,150
                                             ------------ ------------
Total stockholders' equity before
 accumulated other comprehensive (loss)
 income                                          412,264       453,403
Accumulated other comprehensive (loss)
 income                                           (4,058)        5,918
                                             ------------ ------------
         Total stockholders' equity              408,206       459,321
                                             ------------ ------------
         Total liabilities and
          stockholders' equity              $  6,514,975     6,378,817
                                             ============ ============


             BankAtlantic Bancorp, Inc. and Subsidiaries
          Consolidated Statements of Operations (unaudited)



                                For the Three Months Ended
                    --------------------------------------------------
     (in thousands) 6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2007
                    --------- --------- ---------- --------- ---------

INTEREST INCOME:
 Interest and fees
  on loans         $  61,583    68,136     74,415    80,082    79,914
 Interest on
  securities
  available for
  sale                10,553    10,490      8,075     4,835     4,628
 Interest on tax
  exempt securities        -        14      1,266     3,838     3,800
 Interest on tax
  certificates         4,926     3,565      3,939     4,589     3,768
 Interest and
  dividends on
  taxable
  investments          1,425     1,527      1,727     1,552     1,665
                    --------- --------- ---------- --------- ---------
   Total interest
    income            78,487    83,732     89,422    94,896    93,775
                    --------- --------- ---------- --------- ---------
INTEREST EXPENSE:
 Interest on
  deposits            14,508    18,593     21,443    22,558    21,473
 Interest on
  advances from
  FHLB                12,433    14,946     17,443    18,987    18,103
 Interest on short-
  term borrowed
  funds                  725     1,279      2,068     2,940     2,010
 Interest on long-
  term debt            5,220     6,283      6,650     6,652     6,136
                    --------- --------- ---------- --------- ---------
   Total interest
    expense           32,886    41,101     47,604    51,137    47,722
                    --------- --------- ---------- --------- ---------
NET INTEREST INCOME   45,601    42,631     41,818    43,759    46,053
Provision for loan
 losses               47,247    42,888      9,515    48,949     4,917
                    --------- --------- ---------- --------- ---------
NET INTEREST INCOME
 AFTER PROVISION      (1,646)     (257)    32,303    (5,190)   41,136
                    --------- --------- ---------- --------- ---------
NON-INTEREST
 INCOME:
 Service charges on
  deposits            24,466    24,014     26,342    25,894    25,808
 Other service
  charges and fees     7,121     7,433      7,171     7,222     7,524
 Securities
  activities, net      8,965    (4,738)    (3,163)    1,207     8,813
 Gain on sales of
  loans                  129        76         68        88       138
 Income from
  unconsolidated
  subsidiaries           287     1,275        337       348       669
 Other                 2,908     2,579      1,690     1,863     2,532
                    --------- --------- ---------- --------- ---------
   Total non-
    interest income   43,876    30,639     32,445    36,622    45,484
                    --------- --------- ---------- --------- ---------
NON-INTEREST
 EXPENSE:
 Employee
  compensation and
  benefits            33,181    35,155     37,922    34,258    37,908
 Occupancy and
  equipment           16,172    16,386     17,026    16,954    15,927
 Advertising and
  business
  promotion            3,662     4,895      5,659     4,276     4,209
 Professional fees     2,219     2,760      3,067     2,542     1,368
 Check losses          2,101     2,718      3,547     3,341     2,731
 Supplies and
  postage              1,282     1,006      1,502     1,159     1,632
 Telecommunication     1,331     1,502      1,348     1,286     1,556
 Impairment,
  restructuring and
  exit activities      5,952      (115)     5,681    11,005     1,122
 Other                 7,839     5,726      6,720     6,858     6,724
                    --------- --------- ---------- --------- ---------
   Total non-
    interest
    expense           73,739    70,033     82,472    81,679    73,177
                    --------- --------- ---------- --------- ---------
(Loss) income from
 continuing
 operations before
 income taxes        (31,509)  (39,651)   (17,724)  (50,247)   13,443
(Benefit) provision
 for income taxes    (12,146)  (15,087)    (7,798)  (20,637)    1,715
                    --------- --------- ---------- --------- ---------
(Loss) income from
 continuing
 operations          (19,363)  (24,564)    (9,926)  (29,610)   11,728
Discontinued
 operations                -     1,121          -         -      (108)
                    --------- --------- ---------- --------- ---------
Net (loss) income  $ (19,363)  (23,443)    (9,926)  (29,610)   11,620
                    ========= ========= ========== ========= =========

                        For the Six
                       Months Ended
                    -------------------
     (in thousands) 6/30/2008 6/30/2007
                    --------- ---------

INTEREST INCOME:
 Interest and fees
  on loans           129,719    159,501
 Interest on
  securities
  available for
  sale                21,043      9,189
 Interest on tax
  exempt securities       14      7,596
 Interest on tax
  certificates         8,491      7,777
 Interest and
  dividends on
  taxable
  investments          2,952      3,252
                    --------- ---------
   Total interest
    income           162,219    187,315
                    --------- ---------
INTEREST EXPENSE:
 Interest on
  deposits            33,101     40,475
 Interest on
  advances from
  FHLB                27,379     36,826
 Interest on short-
  term borrowed
  funds                2,004      4,565
 Interest on long-
  term debt           11,503     12,250
                    --------- ---------
   Total interest
    expense           73,987     94,116
                    --------- ---------
NET INTEREST INCOME   88,232     93,199
Provision for loan
 losses               90,135     12,378
                    --------- ---------
NET INTEREST INCOME
 AFTER PROVISION      (1,903)    80,821
                    --------- ---------
NON-INTEREST
 INCOME:
 Service charges on
  deposits            48,480     50,403
 Other service
  charges and fees    14,554     14,557
 Securities
  activities, net      4,227     10,368
 Gain on sales of
  loans                  205        338
 Income from
  unconsolidated
  subsidiaries         1,562      1,815
 Other                 5,487      4,755
                    --------- ---------
   Total non-
    interest income   74,515     82,236
                    --------- ---------
NON-INTEREST
 EXPENSE:
 Employee
  compensation and
  benefits            68,336     78,998
 Occupancy and
  equipment           32,558     31,871
 Advertising and
  business
  promotion            8,557     10,067
 Professional fees     4,979      3,081
 Check losses          4,819      4,588
 Supplies and
  postage              2,288      3,485
 Telecommunication     2,833      2,937
 Impairment,
  restructuring and
  exit activities      5,837      3,675
 Other                13,565     13,968
                    --------- ---------
   Total non-
    interest
    expense          143,772    152,670
                    --------- ---------
(Loss) income from
 continuing
 operations before
 income taxes        (71,160)    10,387
(Benefit) provision
 for income taxes    (27,233)       863
                    --------- ---------
(Loss) income from
 continuing
 operations          (43,927)     9,524
Discontinued
 operations            1,121      7,812
                    --------- ---------
Net (loss) income    (42,806)    17,336
                    ========= =========


                BankAtlantic Bancorp, Inc. and Subsidiaries
              Consolidated Average Balance Sheet (unaudited)


                                       For the Three Months Ended
                                   -----------------------------------

(in thousands except percentages
 and per share data)                6/30/2008   3/31/2008  12/31/2007
                                   ----------- ----------- -----------

Loans:
    Residential real estate       $ 2,086,519   2,162,421   2,196,552
    Commercial real estate          1,292,627   1,307,236   1,317,578
    Consumer                          743,123     722,327     697,764
    Commercial business               129,332     131,770     132,677
    Small business                    319,096     318,588     309,322
                                   ----------- ----------- -----------
            Total Loans             4,570,697   4,642,342   4,653,893
Investments - taxable               1,137,831   1,186,441   1,036,382
Investments - tax exempt                    -       4,314     135,961
                                   ----------- ----------- -----------
Total interest earning assets       5,708,528   5,833,097   5,826,236
Goodwill and core deposit
 intangibles                           75,401      75,718      76,068
Other non-interest earning assets     450,999     440,961     451,397
                                   ----------- ----------- -----------
Total assets                      $ 6,234,928   6,349,776   6,353,701
                                   =========== =========== ===========
    Tangible assets (note 1)      $ 6,159,527   6,274,058   6,277,633
                                   =========== =========== ===========

Deposits:
    Demand deposits               $   878,864     854,534     885,006
    Savings                           552,094     566,448     589,966
    NOW                               941,964     926,381     830,898
    Money market                      617,013     609,062     638,041
    Certificates of deposit           917,133     992,078   1,015,940
                                   ----------- ----------- -----------
            Total deposits          3,907,068   3,948,503   3,959,851
Short-term borrowed funds             148,407     163,124     182,134
FHLB advances                       1,389,835   1,423,746   1,368,242
Long-term debt                        320,469     320,650     321,885
                                   ----------- ----------- -----------
Total borrowings                    1,858,711   1,907,520   1,872,261
Other liabilities                      34,023      34,673      50,554
                                   ----------- ----------- -----------
Total liabilities                   5,799,802   5,890,696   5,882,666
                                   ----------- ----------- -----------
Stockholders' equity                  435,126     459,080     471,035
                                   ----------- ----------- -----------
Total liabilities and
 stockholders' equity             $ 6,234,928   6,349,776   6,353,701
                                   =========== =========== ===========

Other comprehensive income (loss)
 in stockholders' equity                1,679       1,496      (3,562)
                                   ----------- ----------- -----------
    Tangible stockholders' equity
     (note 1)                     $   358,046     381,866     398,529
                                   =========== =========== ===========
Net Interest Margin                      3.18%       2.91%       2.95%
                                   =========== =========== ===========


Period End
Total loans, net                  $ 4,442,529   4,483,305   4,524,188
Total assets                        6,514,975   6,390,690   6,378,817
Total stockholders' equity            408,206     433,896     459,321
Class A common shares outstanding  51,256,912  51,228,719  51,196,175
Class B common shares outstanding   4,876,124   4,876,124   4,876,124
Cash dividends                        281,431     280,524     281,130
Common stock cash dividends per
 share                                  0.005       0.005       0.005
Closing stock price                      1.76        3.91        4.10
High stock price for the quarter         4.15        5.80        9.60
Low stock price for the quarter          1.56        3.32        2.89
Book value per share                     7.27        7.73        8.19

(in thousands except percentages
 and per share data)                9/30/2007   6/30/2007
                                   ----------- ------------

Loans:
    Residential real estate         2,245,138    2,215,606
    Commercial real estate          1,346,842    1,384,405
    Consumer                          662,320      635,370
    Commercial business               134,390      147,026
    Small business                    304,388      295,483
                                   ----------- ------------
            Total Loans             4,693,078    4,677,890
Investments - taxable                 841,486      795,156
Investments - tax exempt              402,482      399,160
                                   ----------- ------------
Total interest earning assets       5,937,046    5,872,206
Goodwill and core deposit
 intangibles                           76,419       76,784
Other non-interest earning assets     465,427      457,817
                                   ----------- ------------
Total assets                        6,478,892    6,406,807
                                   =========== ============
    Tangible assets (note 1)        6,402,473    6,330,023
                                   =========== ============

Deposits:
    Demand deposits                   922,293      989,259
    Savings                           611,862      605,939
    NOW                               792,462      782,018
    Money market                      660,925      677,545
    Certificates of deposit           996,415      993,458
                                   ----------- ------------
            Total deposits          3,983,957    4,048,219
Short-term borrowed funds             225,034      151,656
FHLB advances                       1,398,245    1,344,855
Long-term debt                        318,762      293,489
                                   ----------- ------------
Total borrowings                    1,942,041    1,790,000
Other liabilities                      46,805       43,465
                                   ----------- ------------
Total liabilities                   5,972,803    5,881,684
                                   ----------- ------------
Stockholders' equity                  506,089      525,123
                                   ----------- ------------
Total liabilities and
 stockholders' equity               6,478,892    6,406,807
                                   =========== ============

Other comprehensive income (loss)
 in stockholders' equity               (1,765)         377
                                   ----------- ------------
    Tangible stockholders' equity
     (note 1)                         431,435      447,962
                                   =========== ============
Net Interest Margin                      3.11%        3.27%
                                   =========== ============


Period End
Total loans, net                    4,586,625    4,618,690
Total assets                        6,485,593    6,495,047
Total stockholders' equity            471,889      512,724
Class A common shares outstanding  51,168,201   53,212,871
Class B common shares outstanding   4,876,124    4,876,124
Cash dividends                      2,315,458    2,386,145
Common stock cash dividends per
 share                                 0.0412       0.0410
Closing stock price                      8.67         8.61
High stock price for the quarter         9.25        11.25
Low stock price for the quarter          7.50         8.38
Book value per share                     8.42         8.83


                   Bank Operations Business Segment
            Condensed Statements of Operations (Unaudited)



                                For the Three Months Ended
                    --------------------------------------------------
  (in thousands)    6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2007
                    --------- --------- ---------- --------- ---------

Net interest income$  49,923    48,005     47,291    49,235    50,914
Provision for loan
 losses               37,801    42,888      9,515    48,949     4,917
                    --------- --------- ---------- --------- ---------
Net interest income
 after provision
 for loan losses      12,122     5,117     37,776       286    45,997
                    --------- --------- ---------- --------- ---------
Non-interest income
  Service charges
   on deposits        24,466    24,014     26,342    25,894    25,808
  Other service
   charges and fees    7,121     7,433      7,171     7,222     7,524
  Securities
   activities, net     1,960       341        861       613       212
  Loss from real
   estate
   operations           (281)        -          -         -         -
  Gain on sales of
   loans                 129        76         68        88       138
  Income from
   unconsolidated
   subsidiaries          147     1,113        163       182       509
  Gain (loss) on
   the sale of
   office
   properties, net        40       (61)      (564)     (362)      (42)
  Other non-
   interest income     3,146     2,637      2,249     2,224     2,535
                    --------- --------- ---------- --------- ---------
  Total non-
   interest income    36,728    35,553     36,290    35,861    36,684
                    --------- --------- ---------- --------- ---------
Non-interest
 expense
  Employee
   compensation and
   benefits           32,118    34,243     37,221    34,244    36,628
  Occupancy and
   equipment          16,171    16,383     17,023    16,951    15,923
  Advertising and
   business
   promotion           3,564     4,861      5,596     4,221     4,079
  Professional fees    2,004     2,260      2,969     2,444     1,233
  Check losses         2,101     2,718      3,547     3,341     2,731
  Supplies and
   postage             1,281     1,003      1,441     1,158     1,629
  Telecommunication    1,326     1,496      1,342     1,283     1,548
  Impairment,
   restructuring
   and exit
   activities          5,952      (115)     5,681    11,005     1,122
  Other                7,820     5,777      6,761     6,848     6,629
                    --------- --------- ---------- --------- ---------
  Total non-
   interest expense   72,337    68,626     81,581    81,495    71,522
                    --------- --------- ---------- --------- ---------

(Loss) income from
 bank operations
 business segment
 before income
 taxes               (23,487)  (27,956)    (7,515)  (45,348)   11,159
  (Benefit)
   provision for
   income taxes       (9,428)  (10,975)    (4,143)  (18,236)      754
                    --------- --------- ---------- --------- ---------
Net (loss) income
 from bank
 operations
 business segment  $ (14,059)  (16,981)    (3,372)  (27,112)   10,405
                    ========= ========= ========== ========= =========

                        For the Six
                       Months Ended
                    -------------------
  (in thousands)    6/30/2008 6/30/2007
                    --------- ---------

Net interest income   97,928   102,984
Provision for loan
 losses               80,689    12,378
                    --------- ---------
Net interest income
 after provision
 for loan losses      17,239    90,606
                    --------- ---------
Non-interest income
  Service charges
   on deposits        48,480    50,403
  Other service
   charges and fees   14,554    14,557
  Securities
   activities, net     2,301       833
  Loss from real
   estate
   operations           (281)      (12)
  Gain on sales of
   loans                 205       338
  Income from
   unconsolidated
   subsidiaries        1,260       874
  Gain (loss) on
   the sale of
   office
   properties, net       (21)     (195)
  Other non-
   interest income     5,783     4,933
                    --------- ---------
  Total non-
   interest income    72,281    71,731
                    --------- ---------
Non-interest
 expense
  Employee
   compensation and
   benefits           66,361    77,292
  Occupancy and
   equipment          32,554    31,865
  Advertising and
   business
   promotion           8,425     9,867
  Professional fees    4,264     2,853
  Check losses         4,819     4,588
  Supplies and
   postage             2,284     3,479
  Telecommunication    2,822     2,927
  Impairment,
   restructuring
   and exit
   activities          5,837     3,675
  Other               13,597    13,746
                    --------- ---------
  Total non-
   interest expense  140,963   150,292
                    --------- ---------

(Loss) income from
 bank operations
 business segment
 before income
 taxes               (51,443)   12,045
  (Benefit)
   provision for
   income taxes      (20,403)    1,001
                    --------- ---------
Net (loss) income
 from bank
 operations
 business segment    (31,040)   11,044
                    ========= =========


                   Bank Operations Business Segment
     Condensed Statements of Condition and Statistics (Unaudited)



                              For the Three Months Ended
                ------------------------------------------------------
 (in thousands
  except
  percentages
  and per share
  data)         6/30/2008  3/31/2008  12/31/2007 9/30/2007  6/30/2007
                ---------- ---------- ---------- ---------- ----------

Statistics:
Tax equivalent:
 Average
  earning
  assets       $5,569,690  5,669,461  5,653,913  5,750,192  5,690,488
 Average
  interest
  bearing
  liabilities  $4,610,344  4,712,913  4,656,897  4,718,381  4,590,419
 Average
  tangible
  assets       $6,002,728  6,085,957  6,080,693  6,194,549  6,127,470
 Average
  tangible
  equity       $  466,141    467,952    481,495    507,963    504,091
 Borrowings to
  deposits and
  borrowings   %    31.61      28.74      28.74      29.89      28.74
Tax equivalent:
 Yield on
  earning
  assets       %     5.61       5.88       6.33       6.71       6.70
 Cost of
  interest-
  bearing
  liabilities  %     2.46       3.02       3.54       3.80       3.70
 Interest
  spread       %     3.15       2.86       2.79       2.91       3.00
 Net interest
  margin       %     3.58       3.37       3.41       3.59       3.72
Performance:
 Efficiency
  ratio        %    83.48      82.13      97.61      95.77      81.65
 Efficiency
  ratio before
  impairment,
  restructuring
  and exit
  activities   %    76.61      82.27      90.81      82.84      80.37
 Return on
  average
  tangible
  assets       %    (0.94)     (1.12)     (0.22)     (1.75)      0.68
 Return on
  average
  tangible
  equity       %   (12.06)    (14.52)     (2.80)    (21.35)      8.26
Earning assets
 repricing:
 Percent of
  earning
  assets that
  have fixed
  rates        %       52         53         54         54         54
 Percent of
  earning
  assets that
  have variable
  rates        %       48         47         46         46         46
 One year Gap  %        1          3         (3)        (9)        (7)
Regulatory
 Capital Ratios
 Total risk-
  based capital%    11.77      11.83      11.63      11.93      12.34
 Tier I risk-
  based capital%     9.99      10.04       9.85      10.17      10.62
 Core capital  %     6.82       6.87       6.94       7.20       7.48

                     For the Six
                     Months Ended
                ----------------------
 (in thousands
  except
  percentages
  and per share
  data)         6/30/2008   6/30/2007
                ---------- -----------

Statistics:
Tax equivalent:
 Average
  earning
  assets        5,619,575    5,678,563
 Average
  interest
  bearing
  liabilities   4,661,628    4,571,041
 Average
  tangible
  assets        6,044,342    6,110,115
 Average
  tangible
  equity          467,044      503,672
 Borrowings to
  deposits and
  borrowings        31.61        28.74
Tax equivalent:
 Yield on
  earning
  assets             5.75         6.70
 Cost of
  interest-
  bearing
  liabilities        2.74         3.67
 Interest
  spread             3.01         3.03
 Net interest
  margin             3.48         3.74
Performance:
 Efficiency
  ratio             82.82        86.02
 Efficiency
  ratio before
  impairment,
  restructuring
  and exit
  activities        79.39        83.92
 Return on
  average
  tangible
  assets            (1.03)        0.36
 Return on
  average
  tangible
  equity           (13.29)        4.39
Earning assets
 repricing:
 Percent of
  earning
  assets that
  have fixed
  rates
 Percent of
  earning
  assets that
  have variable
  rates
 One year Gap
Regulatory
 Capital Ratios
 Total risk-
  based capital
 Tier I risk-
  based capital
 Core capital


                   Bank Operations Business Segment
       Condensed Statements of Financial Condition (Unaudited)

                                          As of
                    --------------------------------------------------
   (in thousands)   6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2007
                    --------- --------- ---------- --------- ---------
ASSETS
Loans receivable,
 net               $4,357,541 4,388,334  4,524,188 4,586,625 4,618,690
Investment
 securities           501,741   237,031    262,404   482,666   507,593
Available for sale
 securities           755,651   790,570    789,917   570,624   563,318
Goodwill               70,489    70,489     70,489    70,489    70,489
Core deposit
 intangible asset       4,711     5,047      5,397     5,747     6,097
Other assets          679,015   720,485    509,567   557,951   505,874
                    --------- --------- ---------- --------- ---------
  Total assets     $6,369,148 6,211,956  6,161,962 6,274,102 6,272,061
                    ========= ========= ========== ========= =========

LIABILITIES AND
 STOCKHOLDER'S
 EQUITY
Deposits
  Demand           $  891,142   912,862    824,211   896,094   971,260
  NOW                 939,714   928,275    900,233   801,289   769,994
  Savings             526,303   571,456    580,497   613,010   608,791
  Money market        621,899   618,045    624,390   656,218   666,820
  Certificates of
   deposit            955,921   964,976  1,024,074 1,002,197 1,000,278
                    --------- --------- ---------- --------- ---------
Total deposits      3,934,979 3,995,614  3,953,405 3,968,808 4,017,143
Advances from
 Federal Home Loan
 Bank               1,657,036 1,477,040  1,397,044 1,417,047 1,397,051
Short term
 borrowings           135,200   108,009    170,433   245,895   193,937
Long term debt         26,287    26,467     26,654    29,125    29,397
Other liabilities      65,655    65,351     79,147    74,539    67,747
                    --------- --------- ---------- --------- ---------
  Total liabilities 5,819,157 5,672,481  5,626,683 5,735,414 5,705,275
Stockholder's
 equity               549,991   539,475    535,279   538,688   566,786
                    --------- --------- ---------- --------- ---------
  Total liabilities
   and
   stockholder's
   equity          $6,369,148 6,211,956  6,161,962 6,274,102 6,272,061
                    ========= ========= ========== ========= =========


                   Bank Operations Business Segment
            Average Balance Sheet - Yield / Rate Analysis


                                           For the Three Months Ended
                                          ----------------------------

                                                 June 30, 2008
                                          ---------------------------
                                           Average   Revenue/  Yield/
              (in thousands)               Balance   Expense    Rate
                                          --------- ---------- ------

Loans:
  Residential real estate                $2,086,519     28,469   5.46%
  Commercial real estate                  1,194,902     16,979   5.68
  Consumer                                  743,123      8,273   4.45
  Commercial business                       127,229      2,224   6.99
  Small business                            319,095      5,521   6.92
                                          --------- ---------- ------
        Total loans                       4,470,868     61,466   5.50
  Investments - tax exempt                        -          -      -
  Investments - taxable                   1,098,822     16,615   6.05
                                          --------- ---------- ------
  Total interest earning assets           5,569,690     78,081   5.61%
                                                    ---------- ------
  Goodwill and core deposit intangibles      75,401
  Other non-interest earning assets         433,038
                                          ---------
  Total Assets                           $6,078,129
                                          =========

Deposits:
  Savings                                $  552,094      1,284   0.94%
  NOW                                       941,964      1,898   0.81
  Money market                              617,013      2,427   1.58
  Certificates of deposit                   917,133      8,899   3.90
                                          --------- ---------- ------
        Total interest bearing deposits   3,028,204     14,508   1.93
                                          --------- ---------- ------
  Short-term borrowed funds                 166,031        788   1.91
  Advances from FHLB                      1,389,835     12,433   3.60
  Long-term debt                             26,274        429   6.57
                                          --------- ---------- ------
  Total interest bearing liabilities      4,610,344     28,158   2.46
  Demand deposits                           878,906
  Non-interest bearing other liabilities     45,770
                                          ---------
  Total Liabilities                       5,535,020
  Stockholder's equity                      543,109
                                          ---------
  Total liabilities and stockholder's
   equity                                $6,078,129
                                          =========
  Net tax equivalent interest income/net
   interest spread                                 $    49,923   3.15%
                                                               ======
  Tax equivalent adjustment                                  -
                                                    ----------
  Net interest income                                   49,923
                                                    ==========

  Margin
  Interest income/interest earning
   assets                                                        5.61%
  Interest expense/interest earning
   assets                                                        2.03
                                                               ------
  Net interest margin (tax equivalent)                           3.58%
                                                               ======

                                                 June 30, 2007
                                          ---------------------------
                                           Average  Revenue/   Yield/
              (in thousands)               Balance  Expense     Rate
                                          --------- --------   ------

Loans:
  Residential real estate                $2,215,606  30,181      5.45%
  Commercial real estate                  1,384,405  28,646      8.28
  Consumer                                  635,370  11,836      7.45
  Commercial business                       147,026   3,306      8.99
  Small business                            295,483   5,944      8.05
                                          --------- --------   ------
        Total loans                       4,677,890  79,913      6.83
  Investments - tax exempt                  398,435   5,846 (1)  5.87
  Investments - taxable                     614,163   9,506      6.19
                                          --------- --------   ------
  Total interest earning assets           5,690,488  95,265      6.70%
                                                    --------   ------
  Goodwill and core deposit intangibles      76,784
  Other non-interest earning assets         436,982
                                          ---------
  Total Assets                           $6,204,254
                                          =========

Deposits:
  Savings                                $  605,940   3,401      2.25%
  NOW                                       782,018   1,749      0.90
  Money market                              677,545   4,789      2.84
  Certificates of deposit                   993,458  11,535      4.66
                                          --------- --------   ------
        Total interest bearing deposits   3,058,961  21,474      2.82
                                          --------- --------   ------
  Short-term borrowed funds                 157,230   2,091      5.33
  Advances from FHLB                      1,344,855  18,102      5.40
  Long-term debt                             29,373     638      8.71
                                          --------- --------   ------
  Total interest bearing liabilities      4,590,419  42,305      3.70
  Demand deposits                           989,434
  Non-interest bearing other liabilities     50,800
                                          ---------
  Total Liabilities                       5,630,653
  Stockholder's equity                      573,601
                                          ---------
  Total liabilities and stockholder's
   equity                                $6,204,254
                                          =========
  Net tax equivalent interest income/net
   interest spread                                 $ 52,960      3.00%
                                                               ======
  Tax equivalent adjustment                          (2,046)
                                                    --------
  Net interest income                                50,914
                                                    ========

  Margin
  Interest income/interest earning
   assets                                                        6.70%
  Interest expense/interest earning
   assets                                                        2.98
                                                               ------
  Net interest margin (tax equivalent)                           3.72%
                                                               ======


(1) The tax equivalent basis is computed using a 35% tax rate.


                           Bank Operations
            Average Balance Sheet - Yield / Rate Analysis


                                            For the Six Months Ended
                                          ----------------------------

                                                 June 30, 2008
                                          ---------------------------
             ( in thousands)               Average   Revenue/  Yield/
                                           Balance   Expense    Rate
                                          --------- ---------- ------

Loans:
  Residential real estate                $2,124,470     58,121   5.47%
  Commercial real estate                  1,249,615     36,522   5.85
  Consumer                                  732,725     18,825   5.14
  Commercial business                       129,659      4,772   7.36
  Small business                            317,838     11,362   7.15
                                          --------- ---------- ------
        Total loans                       4,554,307    129,602   5.69
  Investments - tax exempt                        -          -      -
  Investments - taxable                   1,065,268     31,837   5.98
                                          --------- ---------- ------
  Total interest earning assets           5,619,575    161,439   5.75%
                                                    ---------- ------
  Goodwill and core deposit intangibles      75,560
  Other non-interest earning assets         424,767
                                          ---------
  Total Assets                           $6,119,902
                                          =========

Deposits:
  Savings                                $  559,271      3,302   1.19%
  NOW                                       934,173      4,581   0.99
  Money market                              613,038      5,585   1.83
  Certificates of deposit                   954,605     19,633   4.14
                                          --------- ---------- ------
        Total deposits                    3,061,087     33,101   2.17
                                          --------- ---------- ------
  Short-term borrowed funds                 167,386      2,113   2.54
  Advances from FHLB                      1,406,790     27,379   3.91
  Long-term debt                             26,365        918   7.00
                                          --------- ---------- ------
  Total interest bearing liabilities      4,661,628     63,511   2.74
  Demand deposits                           866,834
  Non-interest bearing other liabilities     47,298
                                          ---------
  Total Liabilities                       5,575,760
  Stockholder's equity                      544,142
                                          ---------
  Total liabilities and stockholder's
   equity                                $6,119,902
                                          =========
  Net interest income/net
  interest spread                                  $    97,928   3.01%
                                                               ======
  Tax equivalent adjustment                                  -
                                                    ----------
  Net interest income                                   97,928
                                                    ==========

  Margin
  Interest income/interest earning
   assets                                                        5.75%
  Interest expense/interest earning
   assets                                                        2.27
                                                               ------
  Net interest margin                                            3.48%
                                                               ======

                                                 June 30, 2007
                                          ---------------------------
             ( in thousands)               Average  Revenue/   Yield/
                                           Balance  Expense     Rate
                                          --------- --------   ------

Loans:
  Residential real estate                $2,198,636  59,692      5.43%
  Commercial real estate                  1,402,559  58,139      8.29
  Consumer                                  621,001  23,201      7.47
  Commercial business                       151,562   6,793      8.96
  Small business                            290,522  11,676      8.04
                                          --------- --------   ------
        Total loans                       4,664,280 159,501      6.84
  Investments - tax exempt                  397,410  11,648 (1)  5.86
  Investments - taxable                     616,873  19,202      6.23
                                          --------- --------   ------
  Total interest earning assets           5,678,563 190,351      6.70%
                                                    --------   ------
  Goodwill and core deposit intangibles      76,960
  Other non-interest earning assets         431,552
                                          ---------
  Total Assets                           $6,187,075
                                          =========

Deposits:
  Savings                                $  567,899   5,971      2.12%
  NOW                                       776,548   3,261      0.85
  Money market                              664,039   8,727      2.65
  Certificates of deposit                   977,674  22,517      4.64
                                          --------- --------   ------
        Total deposits                    2,986,160  40,476      2.73
                                          --------- --------   ------
  Short-term borrowed funds                 180,478   4,723      5.28
  Advances from FHLB                      1,374,900  36,826      5.40
  Long-term debt                             29,503   1,265      8.65
                                          --------- --------   ------
  Total interest bearing liabilities      4,571,041  83,290      3.67
  Demand deposits                           989,490
  Non-interest bearing other liabilities     53,495
                                          ---------
  Total Liabilities                       5,614,026
  Stockholder's equity                      573,049
                                          ---------
  Total liabilities and stockholder's
   equity                                $6,187,075
                                          =========
  Net interest income/net
  interest spread                                  $107,061      3.03%
                                                               ======
  Tax equivalent adjustment                          (4,077)
                                                    --------
  Net interest income                               102,984
                                                    ========

  Margin
  Interest income/interest earning
   assets                                                        6.70%
  Interest expense/interest earning
   assets                                                        2.96
                                                               ------
  Net interest margin                                            3.74%
                                                               ======


(1) The tax equivalent basis is computed using a 35% tax rate.


                   Bank Operations Business Segment
              Allowance for Loan Loss and Credit Quality



  (in thousands)                For the Three Months Ended
                    --------------------------------------------------
                    6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2007
                    --------- --------- ---------- --------- ---------
Allowance for Loan
 Losses
------------------

Beginning balance  $  83,396    94,020     92,358    54,754    50,373

Charge-offs:
  Residential real
   estate             (1,027)     (624)      (255)       (3)      (52)
  Commercial real
   estate            (14,501)  (40,591)    (3,118)   (9,444)        -
  Commercial
   business                -         -          -         -         -
  Consumer            (7,225)   (4,836)    (4,094)   (1,689)     (744)
  Small business        (464)   (1,196)      (534)     (581)   (1,001)
                    --------- --------- ---------- --------- ---------
Total charge-offs    (23,217)  (47,247)    (8,001)  (11,717)   (1,797)
                    --------- --------- ---------- --------- ---------

Recoveries:
  Residential real
   estate                192         -          -         -        15
  Commercial real
   estate                  -         -          -         -       304
  Commercial
   business                3        26         14        29       777
  Consumer               130        88         49       120        81
  Small business         119        61         85       223        84
                    --------- --------- ---------- --------- ---------
Total recoveries         444       175        148       372     1,261
                    --------- --------- ---------- --------- ---------
Net charge-offs      (22,773)  (47,072)    (7,853)  (11,345)     (536)
Transfer specific
 reserves to
 Parent                    -    (6,440)         -         -         -
Provision for loan
 losses               37,801    42,888      9,515    48,949     4,917
                    --------- --------- ---------- --------- ---------
Ending balance     $  98,424    83,396     94,020    92,358    54,754
                    ========= ========= ========== ========= =========
Annualized net
 charge-offs to
 average loans     %    2.04      4.06       0.67      0.97      0.05
                    ========= ========= ========== ========= =========

                        For the Six
  (in thousands)        Months Ended
                    --------------------
                    6/30/2008  6/30/2007
                    --------- ----------
Allowance for Loan
 Losses
-------------------

Beginning balance     94,020     43,602

Charge-offs:
  Residential real
   estate             (1,651)      (203)
  Commercial real
   estate            (55,092)         -
  Commercial
   business                -          -
  Consumer           (12,061)    (1,282)
  Small business      (1,660)    (1,439)
                    --------- ----------
Total charge-offs    (70,464)    (2,924)
                    --------- ----------

Recoveries:
  Residential real
   estate                192         15
  Commercial real
   estate                  -        304
  Commercial
   business               29        819
  Consumer               218        248
  Small business         180        312
                    --------- ----------
Total recoveries         619      1,698
                    --------- ----------
Net charge-offs      (69,845)    (1,226)
Transfer specific
 reserves to Parent   (6,440)         -
Provision for loan
 losses               80,689     12,378
                    --------- ----------
Ending balance        98,424     54,754
                    ========= ==========
Annualized net
 charge-offs to
 average loans          3.07       0.05
                    ========= ==========



                                      As of
                --------------------------------------------------
                6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2007
                --------- --------- ---------- --------- ---------
Credit Quality
--------------

Nonaccrual
 loans         $  77,901    55,790    178,591   165,369    21,806
Nonaccrual tax
 certificates      2,309     2,013      2,094     1,140       711
Real estate
 owned            20,298    19,784     17,216    17,159    23,886
Other
 repossessed
 assets                -         -          -         -         -
                --------- --------- ---------- --------- ---------
Total
 nonperforming
 assets          100,508    77,587    197,901   183,668    46,403
                ========= ========= ========== ========= =========

Nonperforming
 assets to
 total
loans and
 other assets  %    2.05      1.67       4.10      3.74      0.94
Allowance for
 loan losses
 to total
 loans         %    2.21      1.86       2.04      1.97      1.17
Provision to
 average loans %    3.38      3.70       0.82      4.17      0.42
Allowance to
 nonaccrual
 loans         %  126.34    149.48      52.65     55.85    251.10
Nonperforming
 loans to
 total loans   %    1.75      1.25       3.87      3.53      0.47
Nonperforming
 assets to
 reserves and
 stockholder
 equity        %   15.50     12.46      31.45     29.11      7.47


              Parent Company Business Segment Activities
            Condensed Statements of Operations - Unaudited



                                For the Three Months Ended
                    --------------------------------------------------
  (in thousands)    6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2007
                    --------- --------- ---------- --------- ---------
Net interest
 expense           $  (4,324)   (5,374)    (5,473)   (5,476)   (4,861)
Provision for loan
 losses                9,446         -          -         -         -
                    --------- --------- ---------- --------- ---------
Net interest
 income after
 provision for
 loan losses         (13,770)   (5,374)    (5,473)   (5,476)   (4,861)
                    --------- --------- ---------- --------- ---------
Non-interest
 income
  Income from
   unconsolidated
   subsidiaries          140       162        174       167       159
  Securities
   activities, net     7,005    (5,079)    (4,024)      594     8,601
  Other                  269       271        275       156       254
                    --------- --------- ---------- --------- ---------
    Non-interest
     income            7,414    (4,646)    (3,575)      917     9,014
                    --------- --------- ---------- --------- ---------
Non-interest
 expense
  Employee
   compensation
   and benefits        1,063       912        701        14     1,280
  Advertising and
   business
   promotion              98        34         62        55       130
  Professional
   fees                  215       500         98        98       135
  Other                  290       229        300       173       324
                    --------- --------- ---------- --------- ---------
    Non-interest
     expense           1,666     1,675      1,161       340     1,869
                    --------- --------- ---------- --------- ---------
  (Loss) income
   from parent
   company
   activities
   before income
   taxes              (8,022)  (11,695)   (10,209)   (4,899)    2,284
  (Benefit)
   provision for
   income taxes       (2,718)   (4,112)    (3,655)   (2,401)      961
                    --------- --------- ---------- --------- ---------
  Net (loss)
   income from
   parent company
   business
   segment         $  (5,304)   (7,583)    (6,554)   (2,498)    1,323
                    ========= ========= ========== ========= =========

                        For the Six
                        Months Ended
                    --------------------
  (in thousands)    6/30/2008 6/30/2007
                    --------- ----------
Net interest
 expense              (9,698)    (9,785)
Provision for loan
 losses                9,446          -
                    --------- ----------
Net interest
 income after
 provision for
 loan losses         (19,144)    (9,785)
                    --------- ----------
Non-interest
 income
  Income from
   unconsolidated
   subsidiaries          302        940
  Securities
   activities, net     1,926      9,535
  Other                  540        433
                    --------- ----------
    Non-interest
     income            2,768     10,908
                    --------- ----------
Non-interest
 expense
  Employee
   compensation
   and benefits        1,975      1,706
  Advertising and
   business
   promotion             132        200
  Professional
   fees                  715        228
  Other                  519        647
                    --------- ----------
    Non-interest
     expense           3,341      2,781
                    --------- ----------
  (Loss) income
   from parent
   company
   activities
   before income
   taxes             (19,717)    (1,658)
  (Benefit)
   provision for
   income taxes       (6,830)      (138)
                    --------- ----------
  Net (loss)
   income from
   parent company
   business
   segment           (12,887)    (1,520)
                    ========= ==========



       Condensed Statements of Financial Condition - Unaudited

                                       As of
                 --------------------------------------------------
(in thousands)   6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2007
                 --------- --------- ---------- --------- ---------
ASSETS
Cash            $   17,261    27,624      9,163    12,540    28,332
Securities          18,664    28,864    185,724   201,155   193,979
Investment in
 subsidiaries      638,679   634,447    535,281   538,691   566,787
Investment in
 unconsolidated
 subsidiaries        8,820     8,820      8,820     8,839     8,685
Other assets        21,006    30,672     16,339     8,466     8,370
                 --------- --------- ---------- --------- ---------
Total assets    $  704,430   730,427    755,327   769,691   806,153
                 ========= ========= ========== ========= =========
LIABILITIES AND
 STOCKHOLDERS'
 EQUITY
Subordinated
 debentures and
 notes payable  $  294,195   294,195    294,195   294,195   289,040
Other
 liabilities         2,029     2,336      1,811     3,607     4,389
                 --------- --------- ---------- --------- ---------
Total
 liabilities       296,224   296,531    296,006   297,802   293,429
                 --------- --------- ---------- --------- ---------
Stockholders'
 equity            408,206   433,896    459,321   471,889   512,724
                 --------- --------- ---------- --------- ---------
Total
 liabilities
 and
 stockholders'
 equity         $  704,430   730,427    755,327   769,691   806,153
                 ========= ========= ========== ========= =========


                   Parent Company Business Segment
              Allowance for Loan Loss and Credit Quality

Parent Company and Work-out
 Subsidiary                             For the Three     For the Six
          (in thousands)                Months Ended      Months Ended
                                    --------------------- ------------
                                    6/30/2008  3/31/2008   6/30/2008
                                    ---------- ---------- ------------
Allowance for Loan Losses
----------------------------------

Beginning balance                  $    6,440          -            -
Charge-offs                            (8,184)         -       (8,184)
Specific reserves transfer from
 BankAtlantic                               -      6,440        6,440
Provision for loan losses               9,446          -        9,446
                                    ---------- ---------- ------------
Ending balance                     $    7,702      6,440        7,702
                                    ========== ========== ============

                                            As of
                                    ---------------------
                                    6/30/2008  3/31/2008
                                    ---------- ----------
Credit Quality
----------------------------------
Nonaccrual loans                   $   90,412    101,493
Specific reserves                      (7,702)    (6,440)
                                    ---------- ----------
Nonaccrual loans, net              $   82,710     95,053
                                    ========== ==========


          Consolidated BankAtlantic Bancorp and Subsidiaries
          Nonperforming Assets and Credit Quality Statistics

          (in thousands)                    As of
                                    ---------------------
                                    6/30/2008  3/31/2008
                                    ---------- ----------
Nonperforming Assets
----------------------------------
Commercial real estate             $  138,808    130,645
Residential                            18,208     15,141
Consumer                                4,495      4,374
Commercial business                     5,638      6,231
Small business                          1,165        893
                                    ---------- ----------
Total nonaccrual loans                168,314    157,284
Nonaccrual tax certificates             2,309      2,013
Real estate owned                      20,298     19,784
Other repossessed assets                    -          -
                                    ---------- ----------
Total nonperforming assets, gross  $  190,921    179,081
                                    ========== ==========

Credit Quality Statistics
----------------------------------
Nonperforming assets, gross to
 total loans and other assets      %     3.83       3.77
Allowance for loan losses to total
 loans                             %     2.33       1.96
Provision to average loans         %     4.13       3.70
Allowance to nonaccrual loans      %    63.05      57.12

SOURCE: BankAtlantic Bancorp, Inc.

BankAtlantic Bancorp, Inc., Fort Lauderdale
Donna Rouzeau or Leo Hinkley, 954-940-5300
or
Public Relations:
Hattie Hess, 954-940-6383
or
Public Relations for BankAtlantic:
Boardroom Communications
Caren Berg, 954-370-8999

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding BankAtlantic Bancorp's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.