FORT LAUDERDALE, Fla., March 25 /PRNewswire-FirstCall/ -- BankAtlantic
Bancorp (NYSE: BBX) today announced that it has settled its previously
disclosed litigation between the Company and a technology company in which it
had invested and the technology company's founder. Pursuant to the
settlement, the Company was given the opportunity and chose to sell its stock
in the technology company to a third-party investor group for $15 million in
cash, its original cost, and received additional compensation for legal
expenses and damages consisting of $1.7 million in cash and the return of
378,000 shares of the Company's Class A Common Stock owned by the technology
company. The parties also exchanged releases, and the pending litigation
between the parties will be dismissed in connection with the settlement. As a
result of the settlement, the Company has no further interest in the
technology company.
The Company initially made the $15 million investment, consisting of cash
and 748,000 shares of the Company's Class A Common Stock, in the technology
company in October 1999. During 2001, the Company and affiliated investors,
including Chairman and CEO Alan B. Levan and Vice Chairman John E. Abdo,
initiated a lawsuit on behalf of the Company and others against the founder of
the technology company personally. The Company's investment was fully charged
off in the second quarter, 2002, based on the Company's analysis of the
technology company's operations at that time. In connection with the
write-off, the Company revised its investment policies to limit equity
investments at the holding company level to liquid securities.
The decision to take advantage of the opportunity to sell its investment
in the technology company pursuant to the settlement is consistent with the
investment policy adopted by the Company in 2002. Alan B. Levan, John E.
Abdo, as well as certain affiliates of the Company's parent, BFC Financial
Corporation, elected to retain their investments in the technology company but
recovered legal expenses and damages in connection with the settlement,
totaling in the aggregate approximately $442,590 in cash and by delivery from
the technology company of 79,835 shares of BankAtlantic Bancorp Class A Common
Stock to those parties. The legal fees associated with the lawsuit and the
damages received by BankAtlantic Bancorp and its affiliates were shared pro
rata based on the amount of each party's original investment in the technology
company.
The Company also announced that it has prepaid approximately $100 million
of Federal Home Loan Bank advances with an average effective rate of 5.0% per
annum. The decision to prepay the advances was made in the expectation that
it will favorably impact interest costs in future periods. After giving
effect to the pre-payments, the Company's remaining outstanding Federal Home
Loan Bank advances consist of approximately $600 million of fixed rate
advances, maturing between 2007 and 2011, with an average effective rate of
5.0%.
In connection with the settlement with the technology company, the Company
will record an after tax gain of $8.6 million in first quarter, 2004. In
connection with the prepayment of the Federal Home Loan Bank advances, the
Company will record an after tax charge of approximately $7.0 million in the
quarter.
About BankAtlantic Bancorp:
BankAtlantic Bancorp (NYSE: BBX) is a financial services holding company
and the parent company of BankAtlantic and Ryan Beck & Co. Through these
subsidiaries, BankAtlantic Bancorp provides a full line of products and
services encompassing consumer and commercial banking, brokerage and
investment banking.
BankAtlantic, "Florida's Most Convenient Bank," is one of the largest
financial institutions headquartered in Florida and provides a comprehensive
offering of banking services and products via its broad network of community
branches throughout Florida and its online banking division --
BankAtlantic.com. BankAtlantic has 73 branch locations and operates more than
190 conveniently located ATMs. BankAtlantic is open 7 days a week and offers
holiday hours, extended weekday hours, Totally Free Change Exchange coin
counters, 24/7 call center service, and free retail and business checking with
a free gift.
Seven-Day Banking - Monday through Sunday
Extended branch lobby hours are 8:30 am - 5:00 pm, Monday through Wednesday,
and 8:30 am - 8:00 pm, Thursday and Friday.
Extended drive-thru hours are 7:30 am - 8:00 pm, Monday through Friday.
Saturday branch lobby hours are 8:30 am - 3:00 pm, and drive-thru hours are
7:30 am - 6:00 pm.
Sunday branch lobby hours are 11:00 am - 4:00 pm, and drive-thru hours are
11:00 am - 4:00 pm.
Ryan Beck & Co. is a full-service broker dealer engaging in underwriting,
market making, distribution, and trading of equity and debt securities. The
firm also provides money management services, general securities brokerage,
including financial planning for the individual investor, consulting and
financial advisory services to financial institutions and middle market
companies. Ryan Beck & Co. also provides independent research in the
financial institutions, healthcare, technology, and consumer product
industries. Ryan Beck & Co. has approximately 500 financial consultants
located in 33 offices nationwide.
BankAtlantic Bancorp Contact Info:
Investor Relations:
Contact: Leo Hinkley, Vice President
Phone: (954) 760-5317
Fax: (954) 760-5415
Email: InvestorRelations@BankAtlanticBancorp.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.
These forward-looking statements are based largely on the expectations of 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; changes in interest rates and the effects of, and changes in, trade,
monetary and fiscal policies and laws; and achieving the expected benefits of
the prepayment of the Federal Home Loan Bank advances. 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.
SOURCE BankAtlantic Bancorp
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http://www.bankatlantic.com
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CONTACT:
Leo Hinkley, Vice President, Investor
Relations, BankAtlantic, +1-954-760-5317, or fax,
+1-954-760-5415, or investorRelations@BankAtlanticBancorp.com
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