BankAtlantic Sues Richard X. Bove and Ladenburg Thalmann for Defamation

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--BankAtlantic announced that it has, this morning, filed a lawsuit in the state court for Broward County, Florida, against bank analyst Richard X. Bove and his firm, Ladenburg Thalmann, seeking damages for defamation and negligence stemming from a widely distributed and frequently republished report by Bove and Ladenburg entitled “Who Is Next?” In connection with the suit, BankAtlantic’s Chairman, Alan B. Levan, issued the following statement:

In the wake of the highly publicized failure of IndyMac, breathless television reporters filled the airwaves with the repeated question on the minds of an anxious public: “who is next?” Of course, if there is anyone who knows “who is next,” it would be the folks at the FDIC with mountains of detailed financial information about every institution enjoying deposit insurance. They, however, keep what they know to themselves – for good reason. Thus, without an official answer based on real information, some members of the media, anxious to fill the gap of knowledge caused by the FDIC’s silence turned to what seemed to be the next best thing: a supposed expert who said he knew the answer and was willing to share it with an anxious national audience – Richard X. Bove and Ladenburg, his employer. The problem is that, while Bove's report purports to consider which banks might fail, he failed to examine the health of the banks and thrifts in his report. Instead, he only examined holding company data which, in at least our case, is meaningless information. This is simply shocking.

Although we do not know how many errors appear in the Bove “analysis,” we do know about BankAtlantic. Had Mr. Bove examined the financial condition of BankAtlantic, the FDIC insured institution, he would have discovered the following: (i) in every measurable category, BankAtlantic is “well capitalized;” (ii) BankAtlantic’s ratio of non-performing loans to total loans is, in this market, an enviable 1.25%; (iii) BankAtlantic’s ratio of non-performing loans to its capital and reserves is 12.5%; and, (iv) Bove’s “Danger Zone” was above 5% of non-performing loans to total loans and above 40% of non-performing loans to total common equity plus reserves. BankAtlantic’s numbers are not even close. (While this information was as of March 31, 2008, the information as of June 30, 2008, will not be significantly different.)

These are not opinions. They are facts. And these are just some of the many measurable criteria that any knowledgeable person acting in good faith would use to determine where BankAtlantic should sit on the fear index – the answer is, of course, nowhere. Based on these facts – indeed, undisputed facts – no one would ever conclude that BankAtlantic belongs to any list of “next."

Notwithstanding these undisputed facts, on July 13, 2008, Richard X. Bove and Ladenburg published a report with a title that turned the question on the minds of many into an answer: “Who Is Next.” In it, Bove and Ladenburg identified two “methodologies” that, according to them, could be used to determine whether a “bank or thrift” was in or near what they called “the danger zone.” He then took data provided by a research firm on bank and thrift holding companies, asserted and implied that holding company data represented the financial condition of insured subsidiaries, and undertook to specifically identify “institutions” that, according to him, were in or near the “danger zone.” In the case of BankAtlantic, the financial statements of its two holding companies do not mirror the banking subsidiary, even if such a methodology made sense. BankAtlantic’s two holding Companies, BankAtlantic Bancorp and BFC Financial Corporation contain other assets and business lines which make the comparison nonsensical. Simply by way of example of the gross errors in this “analysis,” Bove compared the non-performing loans of BankAtlantic with the capital of BFC Financial Corporation, a public company that owns 23% of BankAtlantic Bancorp that in turn owns BankAtlantic and other business lines. The so-called analysis itself was totally false and the impression it created foreseeable.

The problem we face is that the indisputable facts are now buried in the sensational headlines Bove and Ladenburg have falsely created – and, for whatever reason, have refused to retract. Literally dozens of other analysts and commentators have picked up on the Bove “analysis,” assumed its legitimacy, and passed it on to a growing audience on the Internet. Soon, the falsehood will be presumed true and the truth false, leading us to regretfully conclude that the only way BankAtlantic can clear its name from this irresponsible defamation – and that is what it is – is in the courthouse.

While we work through this process, we also want everyone to know that, before publishing or republishing the Bove Report, or providing him an audience to repeat it, one should do what the Bove Report did not do - look at the publicly available financial information which makes clear that BankAtlantic is financially strong and well positioned to serve its customers and the community.

About BankAtlantic Bancorp:

BankAtlantic Bancorp (NYSE:BBX) is a financial services 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

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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. 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.