<PAGE> 1
Exhibit (c)(4)
Presentation to the Board of Directors:
[BANK ATLANTIC LOGO]
January 13, 2000
[LEHMAN BROTHERS LOGO]
<PAGE> 2
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY
II. FINANCIAL ANALYSIS
A. Stock Market Performance
B. Peer Group Analysis
C. Selected Recent Transactions
D. Fundamental Valuation Analysis and Pro Forma Financial Impact
III. EXHIBITS
A. Peer Group Analysis
B. Shareholder Analysis
<PAGE> 3
EXECUTIVE SUMMARY
INTRODUCTION AND OVERVIEW
- Lehman Brothers is pleased to meet with the Board of Directors of
BankAtlantic Bancorp, Inc. ("BankAtlantic" or the "Company")
- In this presentation we summarize our analysis of a proposed
restructuring of the equity of BankAtlantic entailing a buy-out of the
publicly-held Class "B" shares for $6.00 per share in cash to be paid by
the Company
- Lehman Brothers has been retained as financial advisor to the Company to
deliver an opinion as to the fairness to the Company, from a financial
viewpoint, of the price proposed to be paid to those Class "B"
shareholders
- Based on our analysis, which includes consideration of the presentation
given by Keefe, Bruyette & Woods, we are able to deliver a written
opinion that the transaction is fair to BankAtlantic from a financial
point of view
1
<PAGE> 4
EXECUTIVE SUMMARY
PROCESS UNDERLYING LEHMAN BROTHERS' FAIRNESS OPINION
- To support our opinion, we have reviewed and analyzed:
- Publicly available financial reports
- Internal financial reports and information, including
unaudited financial information as of December 31, 1999
- Consensus earnings estimates of equity analysts following the
Company
- Trading history of the Company's Class "A" and Class "B"
shares
- Held discussions with senior management of BankAtlantic regarding:
- Current operations
- Strategy and future direction
- Financial conditions and performance
- Regulatory relationships
- Future prospects
- Performed valuation and pro forma analyses:
- Peer group analysis
- Analysis of recent "going private" transactions
- Discounted cash flow analysis using excess equity method
- Pro forma impact on earnings, book value, return on equity and
capitalization
2
<PAGE> 5
EXECUTIVE SUMMARY
A REVIEW OF THE PROPOSED PRICE INDICATES THE PROPOSAL IS CONSISTENT WITH
TRADITIONAL VALUATION METHODOLOGIES EMPLOYED BY LEHMAN BROTHERS
[CHART]*
52 Week Lehman Analysis
High/ ------------------------------------------------------
Low- Peer Comparable Stand-alone Pro Forma
Class B Group Transactions Discounted Discounted
Stock Cash Flow Cash Flow
* Chart compares the 52 week high/low of the Class B stock with that of the
selected Peer Group, comparable transactions, stand-alone discounted cash
flow, and pro forma discounted cash flow.
3
<PAGE> 6
EXECUTIVE SUMMARY
KEY TERMS OF THE PROPOSED TRANSACTION
Proposed Transaction: Repurchase by BankAtlantic of all
publicly-held Class "B" shares
Structure: Cash-out merger
Form of Consideration: Cash
Proposed Price/Class B share: $6.00
Aggregate value: $36.9 million(1)
Financing: Cash resources of the company and
borrowings including proceeds of
$150 million shelf issue filed
December 21, 1999
Timing: Expected transaction announcement
week of 1/10/00 Expected completion
early 2nd quarter 2000
Closing Conditions: Approval of regulators; affirmative
vote of majority of each class of
shareholders; final majority vote of
Board of Directors
(1) Based on 5,388,392 publicly-held shares outstanding and options on 1,762,777
Class "B" shares at a weighted average strike price of $3.43 both as of
December 31, 1999
4
<PAGE> 7
EXECUTIVE SUMMARY
PROPOSED PRICING PARAMETERS OF THE TRANSACTION
<TABLE>
<CAPTION>
CLASS "A" CLASS "B"
---------------------- ---------------------- -----------
TRANSACTION
RELEVANT CURRENT RELEVANT CURRENT VALUE
DATA(1) MARKET(2) DATA(1) MARKET(2) $6.00
-------- --------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
Premium to Current Market $ 4.00 -- $ 4.75 -- 26.3%
Price to 52 week high $ 7.77 -48.5% $ 8.16 -41.8% -26.4%
Price to 52 week low $ 3.75 6.7% $ 4.44 7.0% 35.1%
AGGREGATE MARKET CAP./CONSIDERATION(3) 32.418 $ 129.7 10.265 $ 48.8 $ 32.3
FULLY DILUTED VALUE -- -- -- -- $ 36.9
IMPLIED PRICING MULTIPLES
Price/Book Value Per Share $ 5.67 0.71 x $ 5.67 0.85 x 1.06 x
Price/Tangible Book Value Per Share $ 4.36 0.92 x $ 4.36 1.09 x 1.38 x
Price/1999E EPS(4) $ 0.59 6.8 x $ 0.54 8.9 x 11.2 x
Price/2000E EPS(4) $ 0.65 6.2 x $ 0.59 8.0 x 10.2 x
Price/1999E Cash EPS(4) $ 0.66 6.1 x $ 0.60 7.9 x 10.0 x
Price/2000E Cash EPS(4) $ 0.72 5.6 x $ 0.65 7.3 x 9.2 x
1999 PEG Ratio(5) 9% 0.75 9% 0.98 1.24
2000 PEG Ratio(5) 9% 0.68 9% 0.89 1.13
</TABLE>
--------------------------------------------
(1) At or for the period ended September 30, 1999
(2) As of January 12, 2000
(3) Based on shares outstanding; price per Class "B" Share reflects aggregate
consideration for public float
(4) Based on First Call estimates
(5) (Price/ Earnings)/ Projected EPS Growth Rate; long-term growth rate based on
First Call secular growth rate
5
<PAGE> 8
EXECUTIVE SUMMARY
VOTING AND ECONOMIC OWNERSHIP IMPLICATIONS OF THE PROPOSED TRANSACTION
[GRAPH]*
* Graph indicates the voting and economic rights in BankAtlantic Bancorp Inc.
by the Public Shareholders and the voting and economic rights in
BankAtlantic Bancorp Inc. by BFL Financial Corporation prior to the
transaction and after the transaction had been consummated.
6
<PAGE> 9
EXECUTIVE SUMMARY
MERITS OF THE PROPOSED TRANSACTION AND ASSOCIATED CONSIDERATIONS
- Key merits of the transaction include:
- Provides immediate premium to Class "B" public shareholders
- Class "B" Shareholders can still participate in the Company's
performance by buying Class "A" shares with proceeds of
transaction
- Accretive to earnings per Class "A" share and Class "B" share
- Boosts earnings per share growth rate
- Accretive to book value per share in approximately 2 years
- Simplifies capital structure of the Company
- Makes it easier for investors and analysts to understand the
capital structure and financial performance of the Company and
so better assess its future prospects
- Should increase investor interest in, and trading volume and
liquidity of, Class "A" shares
- Key considerations include:
- Class "B" public shareholders are bought out of the equity
market, albeit at a premium, and thus forsake future potential
upside equity appreciation
- Cash consideration offered does not provide opportunity for
Class "B" public shareholders to undertake a tax-free exchange
- Transaction must be fair, and be seen to be fair, to relevant
constituencies
- Increases equity leverage of the company
7
<PAGE> 10
FINANCIAL ANALYSIS-STOCK MARKET PERFORMANCE
CONSIDERATION OF THE PROPOSED PRICE MUST ALSO BE UNDERTAKEN AGAINST THE
BACKDROP OF CURRENT INDUSTRY DYNAMICS
- Financial stocks in general, and thrifts in particular, significantly
underperformed the overall market in 1999.
<TABLE>
<S> <C>
Lehman Brothers Thrift Index -25.4%
Lehman Brothers Super-Regional Bank Composite -21.3%
Lehman Brothers Regional Bank Composite -12.9%
S & P 500 19.5%
</TABLE>
- Several sector-specific concerns exist for this underperformance:
- Concerns as to top-line revenue growth, including impact of
expected interest rate rises on financial performance
- Fund redemptions
- High profile earnings "misses" by many companies within the
past year
- Renewed focus on capital strength given mark-to-market impact
of securities portfolios on equity
- Initial euphoria over passage of Gramm-Leach-Bliley financial
services reform act has evaporated
- Potential impact of internet on core financial services
businesses
- Depressed level of merger and acquisition activity in 1999
8
<PAGE> 11
FINANCIAL ANALYSIS-STOCK MARKET PERFORMANCE
FINANCIAL INSTITUTIONS HAVE SIGNIFICANTLY UNDERPERFORMED RELATIVE TO THE OVERALL
MARKET
ONE YEAR RELATIVE PRICE PERFORMANCE
[GRAPH]*
* Graph demonstrates the underperformance of the banking industry relative to
the overall market by comparing the Lehman Brothers Thrift Index, the
Lehman Brothers Super Regional Bank Composite, and the Lehman Brothers Bank
Regional Composite with the S&P 500 Index from 12/31/98 through 12/31/99.
9
<PAGE> 12
FINANCIAL ANALYSIS-STOCK MARKET PERFORMANCE
BANKATLANTIC'S STOCK PRICE HAS BEEN ADVERSELY IMPACTED IN THE PAST YEAR, IN PART
DUE TO NEGATIVE SENTIMENT TOWARDS SMALL CAP THRIFTS, BUT ALSO AS EARNINGS
ESTIMATES FOR THE COMPANY HAVE BEEN REVISED DOWNWARDS
ONE YEAR PERFORMANCE COMPARISON
[GRAPH]*
* Graph compares the one year performance of Bank Atlantic Bancorp Inc's
Class A common stock and Class B common stock with the S&P 500 and the
selected Peer Group from 1/1/99 through 1/1/00.
<TABLE>
<CAPTION>
AVERAGE MONTHLY VOLUME
------------------------------------
<S> <C>
BBX (Class A) 2,100,000 shares
BANC (Class B) 669,814 shares
----------------
Total 2,769,814 shares
</TABLE>
10
<PAGE> 13
FINANCIAL ANALYSIS-STOCK MARKET PERFORMANCE
THE RECENT UNDERPERFORMANCE IN BANKATLANTIC AND ITS PEERS' STOCK PRICE HAS MORE
THAN ERASED THE STRONG PERFORMANCE IN 1997 AND THE FIRST HALF OF 1998
THREE YEAR PERFORMANCE COMPARISON
[GRAPH]*
* Graph compares the three year performance of BankAtlantic Bancorp Inc.'s
Class A common stock and Class B common stock with the S&P 500 and the
selected Peer Group from 12/31/96 through 12/31/99.
<TABLE>
<CAPTION>
AVERAGE MONTHLY VOLUME
------------------------------------
<S> <C>
BBX (Class A) 2,240,000 shares
BANC (Class B) 1,060,000 shares
----------------
Total 3,300,000 shares
</TABLE>
11
<PAGE> 14
FINANCIAL ANALYSIS-STOCK MARKET PERFORMANCE
CLASS B SHARES CURRENTLY TRADE AT A 21.2% PREMIUM TO CLASS A SHARES
ONE YEAR CLASS B/CLASS A COMPARISON (12/31/98 TO 1/12/00)
[GRAPH]*
* Graph indicates a one year comparison of the Class B common shares with the
Class A common shares for the period from 1/1/99 through 1/1/00.
THREE YEAR CLASS B/CLASS A COMPARISON (12/31/96 TO 1/12/00)
[GRAPH]*
* Graph indicates a three year comparison of the Class B common shares with
the Class A common shares for the period from 12/31/96 through 12/31/99.
12
<PAGE> 15
FINANCIAL ANALYSIS-PEER GROUP ANALYSIS
USING A PEER GROUP ANALYSIS AND SPECIFICALLY ANALYZING PRICE/2000E EPS,
PRICE/TANGIBLE BOOK VALUE, PEG RATIO, AND DIVIDEND YIELD, AND APPLYING A PREMIUM
OF 20%-40% RESULTS IN A FAIR VALUE OF $5.50-$6.40 PER CLASS B SHARE
- Based upon our review of BankAtlantic's fundamentals and growth
prospects, we believe that the Class "B" is fairly valued based on
current market conditions
- Our conclusion is based upon our analysis of BankAtlantic's financial
performance and market valuation relative to a peer group of comparable
small cap thrifts. This analysis encompassed:
- Balance sheet composition
- Capitalization
- Asset Quality
- Profitability
- Market multiples
- Our conclusion also reflects other non-quantitative factors including:
- BankAtlantic's diversification strategy and the uncertainty
and complexity it adds to the Company's operations
- Dual class capital structure which reduces stock liquidity and
complicates its financials
- Presence of a control shareholder
13
<PAGE> 16
FINANCIAL ANALYSIS-PEER GROUP ANALYSIS
THE FOLLOWING METHODOLOGY WAS USED TO DERIVE A SET OF COMPANIES COMPARABLE TO
BANKATLANTIC
- Review of publicly-traded thrifts, excluding those with attributes as
follows:
- Total assets either less than $1 billion or greater than $20
billion
- Tangible equity to tangible assets ratio greater than 8.00%
- Commercial real estate (including construction and
development) loans to total loans less than 5.0%
- Mutual holding company structure
- Principally engaged in internet activities
- Merger or acquisition target
- Additionally we eliminated companies not meeting six of the nine
following financial and non-financial business criteria:
- Efficiency ratio greater than 45.0%
- Net interest margin less than 3.50%
- Commercial real estate (including construction and
development) loans to total loans greater than 20.0%
- OREO to total assets ratio greater than 0.50%
- Total borrowings to total assets greater than 25.0%
- High growth market (CA, TX, WA, FL, NC, TN, GA, AZ)
- Market capitalization less than $1 billion
- Inside Ownership greater than 10.0%
- Two class share structure
14
<PAGE> 17
FINANCIAL ANALYSIS-PEER GROUP ANALYSIS
LEHMAN BROTHERS' SCREENING PRODUCED 14 COMPARABLE COMPANIES
<TABLE>
<CAPTION>
TOTAL MARKET CRITERIA MET
COMPANY STATE ASSETS CAPITALIZATION (OUT OF 9)
--------------------------------- ----- ------ -------------- ------------
<S> <C> <C> <C> <C>
BankUnited Financial Corporation FL $4,078 $135 8
Coastal Bancorp, Inc. TX 2,967 99 8
PFF Bancorp, Inc. CA 2,952 246 8
Eagle Bancshares, Inc. GA 1,188 78 8
InterWest Bancorp, Inc. WA 2,575 270 7
Sterling Financial Corporation WA 2,514 92 7
St. Francis Capital Corporation WI 2,473 183 7
Jefferson Savings Bancorp, Inc. MO 1,572 109 7
Bank United Corporation TX 16,245 728 7
WesterFed Financial Corporation MT 1,014 65 6
WSFS Financial Corporation DE 1,701 138 6
Downey Financial Corp. CA 8,501 545 6
Metropolitan Financial Corp. OH 1,576 37 6
PBOC Holdings, Inc. CA 3,585 199 6
MEAN $3,781 $209
------ ----
BANKATLANTIC BANCORP FL $3,971 $198
------ ----
</TABLE>
----------------------
Market data as of January 12, 2000
15
<PAGE> 18
FINANCIAL ANALYSIS-PEER GROUP ANALYSIS
BALANCE SHEET COMPOSITION
INVESTMENT SECURITIES/ASSETS
[GRAPH]*
RESIDENTIAL MORTGAGE LOANS/LOANS
[GRAPH]*
LOANS/ASSETS
[GRAPH]*
NON-RESIDENTIAL MORTGAGE LOANS/LOANS
[GRAPH]*
BORROWINGS/ASSETS
[GRAPH]*
CORE DEPOSITS/DEPOSITS(1)
[GRAPH]*
* Graphs compare the Balance Sheet Composition of BankAtlantic with the lows,
medians and highs of the selected peer group for each ratio.
Source: SNL Securities as of September 30, 1999
Note: Loan portfolio composition is from most recent publicly-available
statement where loan breakdown is provided; BankAtlantic's loan
composition is from management financial information
(1) Defined as Non-CD/s/Total Deposits; Core Deposits/Deposits for
BankAtlantic is from management financial information
16
<PAGE> 19
FINANCIAL ANALYSIS-PEER GROUP ANALYSIS
PROFITABILITY
ROAA
[GRAPH]*
FEE INCOME/REVENUES
[GRAPH]*
ROAE
[GRAPH]*
G & A/AVERAGE ASSETS
[GRAPH]*
NET INTEREST MARGIN
[GRAPH]*
EFFICIENCY RATIO
[GRAPH]*
* Graphs compare the profitability of BankAtlantic with the lows, medians
and highs of the selected peer group for each indicator.
Source: SNL Securities For the Quarter Ended September 30, 1999
Note: BankAtlantic Fee Income/Revenues For Nine Months ended September 30,
1999
17
<PAGE> 20
FINANCIAL ANALYSIS-PEER GROUP ANALYSIS
CAPITALIZATION AND ASSET QUALITY
EQUITY/ASSETS
[GRAPH]*
NPAS/LOANS
[GRAPH]*
TANGIBLE COMMON EQUITY/ASSETS
[GRAPH]*
RESERVES/NPLS
[GRAPH]*
LTD + PREFERRED/
TOTAL CAPITALIZATION(1)
[GRAPH]*
RESERVES/LOANS
[GRAPH]*
* Graphs compare the capitalization and asset quality of BankAtlantic with the
lows, medians and highs of the selected Peer Group for each ratio.
Source: SNL Securities as of September 30, 1999
(1) Data is from Company Financials
18
<PAGE> 21
FINANCIAL ANALYSIS-PEER GROUP ANALYSIS
MARKET VALUATION
ONE YEAR RETURN
[GRAPH]*
1999 PEG RATIO
[GRAPH]*
PRICE/2000 EPS
[GRAPH]*
PRICE/TANGIBLE BOOK
[GRAPH]*
5 YEAR PROJECTED EPS GROWTH
[GRAPH]*
DIVIDEND YIELD
[GRAPH]*
* Graphs indicate the market valuation of BankAtlantic's Class A common stock
and Class B common stock by comparing its (i) One Year Return, (ii)
Price/2000 EPS, (iii) 5 Year Projected EPS Growth, (iv) 1999 PEG Ratio, (v)
Price/Tangible Book and (vi) Dividend Yield with the respective lows,
medians and highs of the selected Peer Group.
Market data as of January 12, 2000
Sources: SNL Securities as of September 30, 1999
Note: PEG Ratio is defined as (Price/Earnings)/Projected EPS Growth Rate
19
<PAGE> 22
FINANCIAL ANALYSIS-SELECTED RECENT TRANSACTIONS
LEHMAN BROTHERS HAS COMPARED THE PROPOSED PRICE WITH SELECTED RECENT
TRANSACTIONS
- We have examined selected "going private" transactions:
-- Transactions within the last five years
-- Total value not exceeding $500 million
-- Large shareholder buying out publicly held shares
- From this analysis we derived a comparable set of 10 "going private"
transactions
- We have also reviewed selected recent "Dutch auction" tenders for
publicly-held shares but deem these less relevant to the subject
transaction:
-- Modified market price
-- Not all shareholders bought out
-- Not a definitive outcome
- Derived valuation ranges from our analysis are summarized on the
following page
20
<PAGE> 23
FINANCIAL ANALYSIS-SELECTED RECENT TRANSACTIONS
SELECTED RECENT "GOING PRIVATE" TRANSACTIONS
COMPARABLE TRANSACTIONS ANALYSIS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TRANS- BUYER
ACTION PRE-TRANS ANNOUNCED PREMIUM TO:
ANNOUNCEMENT VALUE -ACTION --------------------------------------
DATE TARGET ACQUIROR ($MN) OWNERSHIP 1 DAY PRIOR 1 WEEK PRIOR 4 WEEKS PRIOR
------------ ------ -------- ------ --------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 06/02/97 Acordia Inc. Anthem Inc. $172.9 66.8% 12.7% 11.5% 26.0%
2 08/04/97 Perkins Family Restaurants The Restaurant Company 76.2 48.1 28.7 26.6 31.8
3 03/19/99 Rock Bottom Restaurants RB Capital 62.1 27.6 18.5 17.6 15.1
4 07/03/96 Golden Poultry Co. Inc. Gold Kist 52.1 75.0 52.0 50.0 39.0
5 07/09/97 Seaman Furniture Company Investor Group 31.5 80.0 26.8(1) 25.3 34.5
6 03/15/95 Ropak Corp LinPac Mouldings 23.3 57.2 7.3 6.0 4.8
7 09/04/97 Cinergi Pictures Entertainment Investor Group 16.7 50.8 39.0 36.7 71.6
8 03/08/99 ENStar Inc. Investor Group 14.2 65.5 78.6 66.7 104.1
9 09/11/98 THT Inc. PH II Inc. 8.1 46.0 57.9 62.2 42.9
10 04/27/99 Hawaii National Bancshares Hawaii National Bancshares 3.9 88.0 12.5(1) 12.5(1) 9.8(2)
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C>
COMPARABLE TRANSACTIONS LOW 7.3% 6.0% 4.8%
MEDIAN 27.8 25.9 33.1
HIGH 78.6 66.7 104.1
PROPOSED TRANSACTION $ 6.00 26.3% 25.5% 21.5%
</TABLE>
<TABLE>
<CAPTION>
PREMIUM
-------------------
<S> <C> <C>
20% 40%
DERIVED VALUE PER SHARE(3) $ 5.70 $ 6.65
</TABLE>
(1) Represents premium to closing price on day last traded prior to
announcement
(2) Represents premium to closing price on day last traded prior to one
month prior to announcement
(3) Based on 1/12/00 closing price for BANC of $4.75
21
<PAGE> 24
FINANCIAL ANALYSIS-SELECTED RECENT TRANSACTIONS
RECENT "DUTCH AUCTION" TENDERS
SELECTED DUTCH AUCTION TRANSACTIONS
<TABLE>
<CAPTION>
TRANS- SHARES COMMON OFFER RANGE COMPLETED ANNOUNCED PREMIUM TO:
DATE ACTION OUT. SHARES % OF --------------- PRICE ----------------------
VALUE ACTUAL ACQUIRED SHARES LOW HIGH PER 1 DAY 1 WEEK 4 WEEKS
ANNOUNCED COMPANY NAME ($MN) (MN) (MN) ACQ. PRICE PRICE SHARE PRIOR PRIOR PRIOR
--------- ------------ -------- ------ -------- ------ ------ ------ --------- ----- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 08/07/97 Pioneer Hi-Bred International $1,517.0 82.2 16.4 20.0% $92.50 $94.00 $92.50 20.8% 25.0% 27.1%
2 02/25/97 IPALCO Enterprises Inc 405.1 57.1 12.7 22.2 29.00 34.00 32.00 14.3 15.3 17.4
3 04/16/97 Briggs & Stratton Corp 183.1 28.9 3.6 12.4 43.00 51.00 51.00 19.3 14.6 11.8
4 11/05/98 Alliant Techsystems Inc 129.2 12.4 1.7 13.5 67.00 77.00 77.00 4.3 11.1 14.9
5 10/09/98 Klamath First Bancorp 38.7 9.4 2.0 21.0 15.00 19.50 19.50 21.9 13.0 27.9
6 06/30/97 Oshkosh B'Gosh Inc 37.4 9.9 1.7 17.0 19.00 22.00 19.75 11.4 3.9 13.7
7 11/20/98 WesterFed Financial Corp,MT 21.7 5.6 1.1 19.4 18.00 20.00 20.00 8.1 11.1 10.3
8 08/14/97 Stac Inc 20.1 30.8 3.7 11.9 4.75 5.50 5.50 44.3 41.7 49.8
9 08/13/97 Envirotest Systems Corp 19.8 13.2 4.4 33.3 3.75 4.50 4.50 24.1 30.9 89.5
10 04/12/99 Supreme Industries Inc 17.0 11.5 1.7 14.8 8.75 10.00 10.00 30.6 36.8 13.9
11 02/14/97 Damen Financial Corp 7.7 3.8 0.5 13.9 13.25 14.75 14.75 9.3 10.8 6.8
12 04/05/99 Meridian Insurance Group 5.9 6.6 0.4 4.8 14.50 18.50 18.50 29.7 33.5 11.2
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C>
DUTCH AUCTIONS LOW 4.3% 3.9% 6.8%
MEDIAN 20.1 15.0 14.4
HIGH 44.3 41.7 89.5
PROPOSED TRANSACTION(1) $6.00 26.3% 25.5% 21.5%
</TABLE>
(1) Based on 1/12/00 closing price for BANC of $4.75
22
<PAGE> 25
FINANCIAL ANALYSIS-FUNDAMENTAL VALUATION
LEHMAN BROTHERS HAS DEVELOPED A FUNDAMENTAL FINANCIAL VALUATION MODEL USING THE
EXCESS EQUITY METHOD
- Lehman Brothers' utilized the following assumptions in projecting
BankAtlantic's future financial performance:
- Tangible assets assumed to grow at 6.0% annual rate
- EPS based on First Call estimates ($0.65 per Class "A" share
in 2000) and 9.0%(1) growth thereafter
- Class "B" EPS derived from Class "A" estimates
- Shares outstanding and fully diluted shares derived as
follows:
- Basic shares remain constant
- Convertible debt is converted as stock appreciates
above strike price
- Dilutive impact of options based on stock price
growth
- Stock price assumed to grow at 9%
- The following ranges were utilized in the excess equity model:
- Tangible common to tangible assets ratio from 5.00% to 6.00%
- Terminal multiple from 7.0x to 9.0x earnings
- Discount rate from 11.0% - 13.0%
--------------
(1) Based on First Call secular growth rate for Class "A" shares
23
<PAGE> 26
FINANCIAL ANALYSIS-FUNDAMENTAL VALUATION
SENSITIVITIES TO STAND-ALONE VALUE USING THE EXCESS EQUITY METHOD
DERIVED DCF VALUATION RANGE: $5.60-$6.40
<TABLE>
<CAPTION>
Terminal Multiple Terminal Multiple
------------------------- ------------------------
7.0X 8.0X 9.0X 7.0X 8.0X 9.0X
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Projected 8.0% 5.34 5.84 6.34 Tangible Equity/ 5.00% 5.93 6.45 6.97
Earnings Growth 9.0% 5.52 6.04 6.55 Tangible Assets 5.50% 5.52 6.04 6.55
10.0% 5.70 6.24 6.78 6.00% 5.10 5.62 6.14
<CAPTION>
Discount Rate Discount Rate
------------------------ ------------------------
11.0% 12.0% 13.0% 11.0% 12.0% 13.0%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Terminal 7.0X 5.76 5.52 5.29 Tangible Equity/ 5.00% 6.72 6.45 6.20
Multiple 8.0X 6.30 6.04 5.78 Tangible Assets 5.50% 6.30 6.04 5.78
9.0X 6.84 6.55 6.28 6.00% 5.88 5.62 5.37
</TABLE>
24
<PAGE> 27
FINANCIAL ANALYSIS-PRO FORMA ANALYSIS
ASSUMPTIONS UNDERLYING OUR ANALYSIS OF THE PRO FORMA IMPACT OF THE PROPOSED
TRANSACTION ON THE COMPANY
- Lehman Brothers utilized the following transaction assumptions:
-- Purchase price of $6.00 per Class "B" share
-- 5.42 million Class "B" shares purchased
-- 1.79 million Class "B" options bought out at a cost of $ 4.5
million
-- Transaction costs: $1.8 million
-- Cost of financing: 10.00%
- Lehman Brothers analyzed the pro forma effect of the transaction on
several key performance measures
- Lehman Brothers then conducted a discounted cash flow valuation
isolating only changes due to the transaction and a one multiple
increase in the terminal value due to:
-- Simplified capital structure
-- Increased liquidity
-- Increased EPS Growth Rate
-- Increased ROE
25
<PAGE> 28
FINANCIAL ANALYSIS-PRO FORMA ANALYSIS
SENSITIVITIES TO PRO FORMA IMPACT OF PROPOSED TRANSACTION
2000 GAAP EPS ACCRETION/DILUTION
[GRAPH]*
IMPACT ON 2000 RETURN ON EQUITY
[GRAPH]*
2001 GAAP EPS ACCRETION/DILUTION
[GRAPH]*
PRO FORMA LEVERAGE
(TANG. EQUITY/ASSETS)
[GRAPH]*
* Graphs indicate the sensitivities to pro forma impact of the proposed
transaction with respect to: (i) 2000 GAAP EPS Accretion/Dilution, (ii)
Impact on 2000 Return on Equity, (iii) 2001 GAAP EPS Accretion/Dilution, and
(iv) Pro Forma Leverage.
26
<PAGE> 29
FINANCIAL ANALYSIS-PRO FORMA ANALYSIS
THE PRO FORMA DISCOUNTED CASH FLOW VALUATION SHOWS A NET PRESENT VALUE BENEFIT
TO REMAINING SHAREHOLDERS OF $0.20 TO $0.60 PER SHARE IF COMPANY PROJECTIONS ARE
MET AND A $0.50 - $1.50 INCREMENTAL BENEFIT TO SHAREHOLDERS IN FIVE YEARS
DERIVED PRO FORMA DCF RANGE: $5.80-$6.60
DISCOUNTED CASH FLOW VALUATION OF COMPANY(1)
DCF VALUE
<TABLE>
<CAPTION>
Terminal Multiple
-----------------------
8.0X 9.0X 10.0X
---- ---- -----
<S> <C> <C> <C> <C>
Discount 11.0% 6.11 6.69 7.28
Rate 12.0% 5.82 6.39 6.95
13.0% 5.56 6.09 6.63
</TABLE>
DCF VALUE
<TABLE>
<CAPTION>
Terminal Multiple
------------------------
8.0X 9.0X 10.0X
----- ----- ------
<S> <C> <C> <C> <C>
Tangible
Equity 5.0% $6.29 $6.85 $7.41
Tangible 5.5% 5.82 6.39 6.95
Assets 6.0% 5.36 5.92 6.48
</TABLE>
INCREMENTAL VALUE PER SHARE AT 12/31/04(2)
[GRAPH]*
* Graph indicates the projected earnings growth per share based on the
incremental value per share at 12/31/04 due to accretion with 1 multiple
expansion to 9x current year's earnings.
INCREMENTAL VALUE PER SHARE AT 12/31/04(3)
(CONSTANT P/E/ MULTIPLE)
[GRAPH]*
* Graph indicates the projected earnings growth per share based on the
incremental value per share at 12/31/04 due to accretion with no P/E
multiple expansion.
(1) Based on comparison of terminal values of Excess Equity Model (Tangible
Equity/Assets Ratio of 5.5%); all other assumptions as provided herein.
(2) Represents implied value differential between base case P/E and pro
forma P/E in 2004 due to EPS accretion with 1 multiple expansion to 9x
current year's earnings
(3) Represents implied value differential between base case P/E and pro
forma P/E in 2004 due to EPS accretion with no P/E multiple expansion.
27
<PAGE> 30
FINANCIAL ANALYSIS-PRO FORMA ANALYSIS
THE PROPOSED TRANSACTION WILL RESULT IN ACCRETION TO BOOK VALUE/SHARE IN 2 YEARS
AND TANGIBLE BOOK VALUE/SHARE WITHIN 5 YEARS USING "STREET" ASSUMPTIONS
BOOK VALUE PER SHARE
[GRAPH]*
* Graph demonstrates that the proposed transactions will result in accretion
to book value per share within two years.
TANGIBLE BOOK VALUE PER SHARE
[GRAPH]*
* Graph demonstrates that the proposed transaction will result in accretion
to the tangible book value per share within five years.
28
<PAGE> 31
FINANCIAL ANALYSIS-PRO FORMA ANALYSIS
UNDER THE BASE SET OF ASSUMPTIONS, THE FOLLOWING IS THE PRO FORMA IMPACT ON THE
COMPANY
PRO FORMA RESULTS
<TABLE>
<CAPTION>
PROJECTIONS
-------------------------------------------------------------------------------
03/31/00 2000 2001 2002 2003 2004
-------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
EPS NA $ 0.67 $ 0.74 $ 0.81 $ 0.89 $ 0.98
% Accretion/(Dilution) NA 2.8% 4.3% 4.9% 5.9% 6.9%
CASH EPS NA $ 0.74 $ 0.81 $ 0.88 $ 0.97 $ 1.06
% Accretion/(Dilution) NA 3.4% 5.0% 5.5% 6.4% 7.3%
BOOK VALUE PER SHARE $5.64 $ 6.22 $ 7.08 $ 8.04 $ 8.47 $ 9.45
% Accretion/(Dilution) -3.0% -2.1% -0.9% 0.2% 0.3% 1.0%
TANGIBLE BOOK VALUE PER SHARE $4.23 $ 4.89 $ 5.86 $ 6.93 $ 7.66 $ 8.72
% Accretion/(Dilution) -7.7% -5.8% -3.6% -1.8% -0.8% 0.2%
COMMON EQUITY/ASSETS 5.02% 5.30% 5.70% 6.12% 7.55% 7.95%
Increase/(Decrease) in % -0.9% -0.9% -0.9% -0.9% -0.9% -0.8%
TANGIBLE EQUITY/TANGIBLE ASSETS 3.81% 4.21% 4.77% 5.32% 6.88% 7.39%
Increase/(Decrease) in % -0.9% -0.9% -0.9% -0.9% -0.9% -0.8%
ROAA NA 0.88% 0.90% 0.93% 0.97% 1.00%
Increase/(Decrease) in % NA 0.0% -0.1% 0.0% 0.0% 0.0%
CASH ROAA NA 1.01% 1.02% 1.05% 1.08% 1.11%
Increase/(Decrease) in % NA 0.0% -0.1% 0.0% 0.0% 0.0%
ROACE NA 15.8% 16.3% 15.7% 14.1% 12.9%
Increase/(Decrease) in % NA 2.7% 3.4% 3.0% 1.9% 1.5%
CASH ROACE NA 24.1% 22.8% 20.8% 17.6% 15.5%
Increase/(Decrease) in % NA 5.2% 5.1% 4.2% 2.5% 1.9%
</TABLE>
29
<PAGE> 32
PEER GROUP ANALYSIS
THE FOLLOWING METHODOLOGY WAS USED TO DERIVE A SET OF COMPANIES COMPARABLE TO
BANKATLANTIC
- Review of publicly-traded thrifts, excluding those with attributes as
follows:
-- Total assets either less than $1 billion or greater than $20
billion
-- Tangible equity to tangible assets ratio greater than 8.00%
-- Commercial real estate (including construction and
development) loans to total loans less than 5.0%
-- Mutual holding company structure
-- Principally engaged in internet activities
-- Merger or acquisition target
- Additionally we eliminated companies not meeting six of the nine
following financial and non-financial business criteria:
-- Efficiency ratio greater than 45.0%
-- Net interest margin less than 3.50%
-- Commercial real estate (including construction and
development) loans to total loans greater than 20.0%
-- OREO to total assets ratio greater than 0.50%
-- Total borrowings to total assets greater than 25.0%
-- High growth market (CA, TX, WA, FL, NC, TN, GA, AZ)
-- Market capitalization less than $1 billion
-- Inside Ownership greater than 10.0%
-- Two class share structure
30
<PAGE> 33
PEER GROUP ANALYSIS
BETWEEN $1 AND $20 BILLION IN ASSETS, CRE + CONST. LOANS/TOTAL LOANS >5%, AND
TANGIBLE EQUITY/TANGIBLE ASSETS RATIO <8%
($ in millions)
<TABLE>
<CAPTION>
MARKET
PRICE CAP/ TANG.
---------------- MARKET TOTAL TOTAL EQUITY/ EFFICIENCY BORROWINGS/
COMPANY NAME BOOK 2000 EPS CAP ASSETS ASSETS ASSETS RATIO ASSETS
-------------------------------- ---- -------- ------ ------- ------ ------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BankUnited Financial Corporation 0.75x 9.7x $135 $ 4,078 3.3% 3.92 64.3% 32.6%
Coastal Bancorp, Inc. 0.95 7.7 99 2,967 3.3 3.59 62.0 39.7
PFF Bancorp, Inc. 1.10 9.2 246 2,952 8.3 7.47 53.0 28.3
Eagle Bancshares, Inc. 1.06 8.3 78 1,188 6.6 6.19 85.5 25.2
InterWest Bancorp, Inc. 1.63 9.3 270 2,575 10.5 5.98 64.7 31.8
Sterling Financial Corporation 0.78 6.5 92 2,514 3.7 2.49 66.0 28.1
St. Francis Capital Corporation 1.38 9.3 183 2,473 7.4 4.73 56.3 33.8
Jefferson Savings Bancorp, Inc. 0.83 10.0 109 1,572 7.0 6.70 57.6 28.7
Bank United Corporation 0.97 6.1 728 16,245 4.5 4.14 52.8 45.1
WesterFed Financial Corporation 0.72 8.3 65 1,014 6.4 7.22 60.0 25.4
WSFS Financial Corporation 1.51 7.3 138 1,701 8.1 5.34 62.0 36.7
Downey Financial Corp. 1.06 8.5 545 8,501 6.4 6.02 58.3 17.5
Metropolitan Financial Corp. 0.80 NA 37 1,576 2.3 2.77 72.0 17.6
PBOC Holdings, Inc. 1.21 5.4 199 3,585 5.6 4.56 53.4 46.7
---- --- ---- ------- --- ---- ---- ----
Median 1.01x 8.3x $137 $ 2,544 6.4% 5.04% 61.0% 30.2%
BankAtlantic Bancorp, Inc.-Class A 0.71x 6.2x
---- --- ---- ------- --- ---- ---- ----
BankAtlantic Bancorp, Inc.-Class B 0.85x 8.0x $198 $ 3,971 5.0% 4.65% 61.8% 36.4%
---- --- ---- ------- --- ---- ---- ----
<CAPTION>
CRE+
CONST./ OREO/ INSIDER ONE/TWO
COMPANY NAME LOANS NIM ASSETS OWNERSHIP CLASSES
-------------------------------- ------- ---- ------ --------- -------
<S> <C> <C> <C> <C> <C>
BankUnited Financial Corporation 5.5% 1.89% 0.08% 18.1% Two
Coastal Bancorp, Inc. 32.1 2.78 0.17 20.3 One
PFF Bancorp, Inc. 22.8 3.17 0.15 10.1 One
Eagle Bancshares, Inc. 48.9 3.04 0.37 13.6 One
InterWest Bancorp, Inc. 37.9 3.74 0.40 10.9 One
Sterling Financial Corporation 33.6 3.36 0.11 6.9 One
St. Francis Capital Corporation 28.6 2.51 0.15 16.0 One
Jefferson Savings Bancorp, Inc. 23.3 2.82 0.05 15.6 One
Bank United Corporation 20.7 2.68 0.16 8.9 One
WesterFed Financial Corporation 13.7 3.45 0.15 14.9 One
WSFS Financial Corporation 30.0 2.78 0.43 3.7 One
Downey Financial Corp. 5.2 2.74 0.74 24.4 One
Metropolitan Financial Corp. 33.7 2.74 0.65 81.6 One
PBOC Holdings, Inc. 15.2 2.03 0.11 2.9 One
---- ---- ---- ---- ---
Median 26.0% 2.78% 0.15% 14.2% One
---- ---- ---- ---- ---
BankAtlantic Bancorp, Inc.-Class A
---- ---- ---- ---- ---
BankAtlantic Bancorp, Inc.-Class B 32.5% 3.16% 0.94% 53.8% Two
---- ---- ---- ---- ---
</TABLE>
-----------
OREO/Assets as of June 30, 1999
Market Data as of January 12, 2000.
31
<PAGE> 34
PEER GROUP ANALYSIS
<TABLE>
<CAPTION>
NON-FINANCIAL
---------------------------------------------------
HIGH INSIDE
GROWTH MARKET CAP OWNERSHIP TWO CLASS
COMPANY NAME MARKET UNDER $1 BN > 10% STRUCTURE
-------------------------------- ------ ----------- --------- ---------
<S> <C> <C> <C> <C>
BankUnited Financial Corporation X X X X
Coastal Bancorp, Inc. X X X
PFF Bancorp, Inc. X X X
Eagle Bancshares, Inc. X X X
InterWest Bancorp, Inc. X X X
Sterling Financial Corporation X X
St. Francis Capital Corporation X X
Jefferson Savings Bancorp, Inc. X X
Bank United Corporation X X
WesterFed Financial Corporation X X
WSFS Financial Corporation X
Downey Financial Corp. X X X
Metropolitan Financial Corp. X X
PBOC Holdings, Inc. X X
--- --- --- ---
BankAtlantic Bancorp, Inc.-Class B X X X X
=== === === ===
<CAPTION>
FINANCIAL
-----------------------------------------------------------------------
EFFICIENCY CRE+CONST./ OREO/ TOTAL BORROWINGS/
RATIO NIM TOTAL LOANS ASSETS TOTAL ASSETS CRITERIA
COMPANY NAME > 45% <3 1/2% >20% >.5% >25% MET
-------------------------------- ---------- ------- ----------- ------ ----------------- --------
<S> <C> <C> <C> <C> <C> <C>
BankUnited Financial Corporation X X X X 8
Coastal Bancorp, Inc. X X X X X 8
PFF Bancorp, Inc. X X X X X 8
Eagle Bancshares, Inc. X X X X X 8
InterWest Bancorp, Inc. X X X X 7
Sterling Financial Corporation X X X X X 7
St. Francis Capital Corporation X X X X X 7
Jefferson Savings Bancorp, Inc. X X X X X 7
Bank United Corporation X X X X X 7
WesterFed Financial Corporation X X X X 6
WSFS Financial Corporation X X X X X 6
Downey Financial Corp. X X X 6
Metropolitan Financial Corp. X X X X 6
PBOC Holdings, Inc. X X X X 6
--- --- --- --- --- ---
BankAtlantic Bancorp, Inc.-Class B X X X X X 9
=== === === === === ===
</TABLE>
32
<PAGE> 35
PEER GROUP ANALYSIS - MARKET DATA
<TABLE>
<CAPTION>
CURRENT 52 WEEK 5 YEAR
STOCK ------------------- 1 YEAR 3 YEAR PROJECTED
COMPANY PRICE HIGH LOW RETURN RETURN EPS GROWTH
-------------------------------- ------- ------ ------ ------ ------ ----------
<S> <C> <C> <C> <C> <C> <C>
BankUnited Financial Corporation $ 7.38 $11.75 $ 6.00 -25.8% -24.4% 8%(2)
Coastal Bancorp, Inc. 15.69 20.25 14.75 -16.6 1.2 11
PFF Bancorp, Inc. 17.56 23.75 15.38 12.4 22.2 6
Eagle Bancshares, Inc. 14.00 25.13 13.00 -20.0 -5.1 11
InterWest Bancorp, Inc. 17.50 25.13 15.75 -18.6 -17.6 12
Sterling Financial Corporation 11.38 17.50 10.75 -31.1 -18.8 12
St. Francis Capital Corporation 18.00 23.00 17.00 -13.3 38.5 11
Jefferson Savings Bancorp, Inc. 11.00 17.63 9.88 -24.1 -15.5 11
Bank United Corporation 22.44 44.00 22.38 -43.7 -8.9 12
WesterFed Financial Corporation 14.75 18.69 14.25 -19.7 -19.7 5
WSFS Financial Corporation 12.19 17.31 11.63 -27.8 8.3 9
Downey Financial Corp. 19.38 25.00 17.69 -20.3 5.0 12
Metropolitan Financial Corp. 4.56 11.38 3.81 -57.6 -6.6 15
PBOC Holdings, Inc. 9.75 11.13 7.63 -7.1 NA 20
----- ----- ---
Median -20.2% -6.6% 11%
----- ----- ---
BankAtlantic Bancorp-Class A $ 4.00 $ 7.83 $ 3.75 -45.1% -31.6% 9%
------ ------ ------ ----- ----- ---
BankAtlantic Bancorp-Class B $ 4.75 $ 8.70 $ 4.44 -49.3% -20.2% 9%
------ ------ ------ ----- ----- ---
<CAPTION>
PRICE/
-------------------
1999 2000 1999 PRICE/ PRICE/ DIV.
COMPANY EPS EPS PEG RATIO BOOK TANG. BOOK YIELD
-------------------------------- ----- ----- --------- ----- ---------- -----
<S> <C> <C> <C> <C> <C> <C>
BankUnited Financial Corporation NMx 9.7x NM% 0.75x 0.90x 0%
Coastal Bancorp, Inc. 8.6 7.7 0.78 0.95 1.29 2.04
PFF Bancorp, Inc. 13.6 9.2 2.27 1.10 1.11 1.37
Eagle Bancshares, Inc. 8.1 8.3 0.74 1.06 1.06 4.57
InterWest Bancorp, Inc. 10.1 9.3 0.84 1.63 1.76 3.20
Sterling Financial Corporation 7.2 6.5 0.60 0.78 1.50 0.00
St. Francis Capital Corporation 10.9 9.3 0.99 1.38 1.56 2.00
Jefferson Savings Bancorp, Inc. 10.7 10.0 0.97 0.83 1.00 2.55
Bank United Corporation 6.8 6.1 0.56 0.97 1.09 3.30
WesterFed Financial Corporation 10.8 8.3 2.15 0.72 0.91 4.34
WSFS Financial Corporation 7.7 7.3 0.86 1.51 1.52 0.98
Downey Financial Corp. 9.2 8.5 0.77 1.06 1.07 1.86
Metropolitan Financial Corp. NA NA NA 0.80 0.84 0.00
PBOC Holdings, Inc. 7.6 5.4 0.38 1.21 1.22 0.00
---- ---- ---- ---- ---- ----
Median 8.9x 8.3x 0.81% 1.01x 1.10x 1.93%
---- ---- ---- ---- ---- ----
BankAtlantic Bancorp-Class A 6.8x 6.2x 0.75% 0.71x 0.92x 2.53%
---- ---- ---- ---- ---- ----
BankAtlantic Bancorp-Class B 8.9x 8.0x 0.98% 0.85x 1.09x 1.94%
---- ---- ---- ---- ---- ----
</TABLE>
Market data as of January 12, 2000
Source: SNL Securities as of September 30, 1999
EPS estimates and projected growth rates from First Call.
BankAtlantic EPS estimates based on First Call estimates for Class A Shares
(1) Data is from IBES
PEG Ratio is defined as (Price/Earnings)/Projected EPS Growth Rate
(2) Bloomberg long Term Growth Rate
33
<PAGE> 36
PEER GROUP ANALYSIS - PROFITABILITY
<TABLE>
<CAPTION>
YIELD ON FEE INCOME/
INTEREST-EARNING COST OF OPERATING EFFICIENCY GAIN ON SALE/
COMPANY ROAA ROAE ASSETS LIABILITIES NIM REVENUE RATIO PRE TAX INC.
-------------------------------- ---- ---- ---------------- ----------- ---- ----------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BankUnited Financial Corporation 0.36% 7.6% 6.71% 5.23% 1.89% 5.6% 64.3% 0.1%
Coastal Bancorp, Inc. 0.51 11.3 7.23 4.48 2.78 11.6 62.0 0.0
PFF Bancorp, Inc. 0.87 11.5 7.49 4.51 3.17 14.6 53.0 -0.9
Eagle Bancshares, Inc. 0.74 12.3 7.66 4.70 3.04 24.6 85.5 6.3
InterWest Bancorp, Inc. 0.92 13.3 7.89 4.13 3.74 16.8 64.7 3.9
Sterling Financial Corporation 0.53 11.2 7.87 4.41 3.36 14.8 66.0 0.0
St. Francis Capital Corporation 0.77 14.2 7.02 4.57 2.51 14.0 56.3 3.7
Jefferson Savings Bancorp, Inc. 0.70 8.7 7.37 4.77 2.82 5.0 57.6 11.7
Bank United Corporation 0.78 16.7 7.45 4.75 2.68 20.9 52.8 10.6
WesterFed Financial Corporation 0.79 8.8 7.57 4.20 3.45 19.7 60.0 4.9
WSFS Financial Corporation 1.08 20.3 7.86 4.53 2.78 43.7 62.0 -0.3
Downey Financial Corp. 0.85 13.0 7.32 4.65 2.74 10.0 58.3 15.3
Metropolitan Financial Corp. 0.23 7.6 7.90 5.19 2.74 11.8 72.0 18.8
PBOC Holdings, Inc. 0.95 20.4 6.76 4.96 2.03 3.7 53.4 0.0
---- ---- ---- ---- ---- ---- ---- ----
MEDIAN 0.78% 11.9% 7.47% 4.61% 2.78% 14.3% 61.0% 3.8%
---- ---- ---- ---- ---- ---- ---- ----
BANKATLANTIC BANCORP 0.91% 14.8% 7.77% 4.58% 3.16% 39.5% 61.8% 5.5%
---- ---- ---- ---- ---- ---- ---- ----
</TABLE>
Source: SNL Securities as of September 30, 1999
(1) Data is from Company Financials
34
<PAGE> 37
PEER GROUP ANALYSIS - BALANCE SHEET
($ in millions)
<TABLE>
<CAPTION>
LOAN PORTFOLIO COMPOSITION
INVESTMENT ------------------------------------------
SECURITIES/ LOANS/ CONST.& CONSUMER BORROWINGS/ LOANS/ CORE DEPOSITS/
COMPANY ASSETS ASSETS 1-4 5+ CRE DEV. C & I & OTHER ASSETS DEPOSITS DEPOSITS(1)
------- ----------- ------ --- -- --- ------- ----- -------- ----------- -------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BankUnited Financial Corporation 10.8% 81.3% 91% 1% 4% 1% 1% 1% 32.6% 145.4% 28.4%
Coastal Bancorp, Inc. 36.6 59.6 46 8 16 16 9 4 39.7 110.2 33.2
PFF Bancorp, Inc. 22.3 74.9 67 4 7 16 3 3 28.3 118.8 42.0
Eagle Bancshares, Inc. 23.4 69.2 33 1 9 39 5 13 25.2 87.1 34.5
InterWest Bancorp, Inc. 31.6 62.1 26 10 24 14 17 9 31.8 99.8 31.0
Sterling Financial Corporation 20.6 71.1 22 8 18 16 19 18 28.1 110.5 45.1
St. Francis Capital Corporation 48.8 45.7 24 13 20 8 10 25 33.8 75.6 41.7
Jefferson Savings Bancorp, Inc. 15.8 80.3 68 2 6 17 1 6 28.7 129.2 24.3
Bank United Corporation 9.1 81.3 53 6 7 14 7 12 45.1 166.5 48.6
WesterFed Financial Corporation 29.0 62.6 45 6 12 2 6 29 25.4 98.3 43.9
WSFS Financial Corporation 32.5 48.6 34 3 29 1 12 21 36.7 90.3 47.2
Downey Financial Corp. 2.9 93.1 89 0 2 3 0 6 17.5 122.0 22.9
Metropolitan Financial Corp. 15.3 78.9 17 31 21 13 8 10 17.6 102.2 28.2
PBOC Holdings, Inc. 29.6 68.4 58 13 15 0 6 7 46.7 145.0 23.6
MEDIAN 22.9% 70.2% 45% 6% 14% 13% 7% 9% 30.2% 110.3% 33.8%
BANKATLANTIC BANCORP 25.8% 65.7% 47% 0% 11% 21% 6% 15% 36.4% 111.9% 45.4%
</TABLE>
Source: SNL Securities as of September 30, 1999
Loan portfolio composition is from most recent publicly available statement
where loan breakdown is provided; Loan portfolio composition for BankAtlantic is
from management financial information
(1) Defined as Non-CD/s/Total Deposits; Core Deposits/Deposits for BankAtlantic
is management financial information
35
<PAGE> 38
PEER GROUP ANALYSIS - ASSET QUALITY
<TABLE>
<CAPTION>
HIGH RISK EQUITY/
NPAS/ NPAS/ RESERVES/ RESERVES/ ASSETS/ HIGH RISK
COMPANY ASSETS LOANS NPLS/ LOANS ASSETS ASSETS
------- ------ ----- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
BankUnited Financial Corporation 0.68% 0.84% 54.1% 0.42% 6.3% 73.6%
Coastal Bancorp, Inc. 0.87 1.46 69.4 0.81 31.7 14.2
PFF Bancorp, Inc. 0.56 0.75 189.1 1.20 22.6 33.3
Eagle Bancshares, Inc. 0.81 1.17 90.3 1.06 36.0 17.2
InterWest Bancorp, Inc. 0.56 0.90 129.6 0.90 43.2 14.9
Sterling Financial Corporation 0.61 0.86 162.8 0.85 42.9 11.0
St. Francis Capital Corporation 0.13(1) 0.28(1) 329.4(1) 0.75(1) 25.9 20.6
Jefferson Savings Bancorp, Inc. 0.70 0.87 68.1 0.53 20.2 39.2
Bank United Corporation 0.67 0.82 92.3 0.66 27.9 16.6
WesterFed Financial Corporation 0.36 0.57 172.2 0.84 16.8 53.2
WSFS Financial Corporation 0.47 0.97 348.9 2.87 20.9 25.6
Downey Financial Corp. 0.41 0.44 121.5 0.47 5.3 114.2
Metropolitan Financial Corp. 1.15 1.46 115.0 0.77 49.8 5.9
PBOC Holdings, Inc. 0.33 0.48 204.2 0.83 25.0 18.4
MEDIAN 0.59% 0.85% 125.5% 0.82% 25.4% 19.5%
BANKATLANTIC BANCORP 0.85% 1.29% 138.9% 1.71% 30.3% 19.4%
</TABLE>
Source: SNL Securities as of September 30, 1999
High Risk Asset is defined as Real estate held for development, multi-family
real estate loans, commercial real estate loans, acquisition, development and
construction loans, and commercial and industrial loans; High Risk Asset for
BankAtlantic is from management financial information
(1) Data is from Company Financials
36
<PAGE> 39
PEER GROUP ANALYSIS - CAPITALIZATION
<TABLE>
<CAPTION>
T. COMMON TIER 1/ LTD+PREF/ INTERNAL
EQUITY/ T. EQUITY/ EQUITY/ RISK BASED TOTAL DOUBLE LTM DIVIDEND CAPITAL
COMPANY ASSETS T. ASSETS ASSETS ASSETS (1) CAPITALIZATION(2) LEVERAGE(2) PAYOUT RATIO GENERATION
------- ------- ---------- --------- ---------- ----------------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BankUnited Financial Corporation 4.66% 3.92% 3.69% 15.6% 68.8% 185.5% NM% NM%
Coastal Bancorp, Inc. 4.51 3.59 2.65 9.6 43.8 167.0 18.3 9.3
PFF Bancorp, Inc. 7.54 7.47 7.47 10.6 0.0 84.5 3.5 11.1
Eagle Bancshares, Inc. 6.19 6.19 6.19 10.0 28.1 129.4 38.8 7.5
InterWest Bancorp, Inc. 6.42 5.98 5.98 11.0 0.0 96.7 32.2 9.0
Sterling Financial Corporation 4.70 2.49 2.49 9.4 48.2 175.2 0.0 11.2
St. Francis Capital Corporation 5.32 4.73 4.73 10.0(2) 0.0 114.5 18.8 11.5
Jefferson Savings Bancorp, Inc. 7.92 6.70 6.70 10.2 0.0 92.8 28.6 6.2
Bank United Corporation 4.64 4.14 4.14 9.3 48.7 138.5 21.0 13.2
WesterFed Financial Corporation 8.92 7.22 7.22 11.4 0.0 99.2 42.4 5.1
WSFS Financial Corporation 5.36 5.34 5.34 11.8 36.0 135.4 8.4 18.6
Downey Financial Corp. 6.07 6.02 6.02 10.7 0.0 98.0 16.9 10.8
Metropolitan Financial Corp. 2.92 2.77 2.77 8.1 21.0 206.8 0.0 7.6
PBOC Holdings, Inc. 4.60 4.56 4.56 11.1 0.0 99.3 0.0 20.4
MEDIAN 5.34% 5.04% 5.04% 10.4% 10.5% 121.9% 18.3% 10.8%
BANKATLANTIC BANCORP 5.97% 4.65% 4.65% 12.4% 52.1% 176.1% 12.1% 13.0%
</TABLE>
Source: SNL Securities as of September 30, 1999
(1) Data as of June 30, 1999
(2) Data is from Company Financials
Internal Capital Generation is defined as Cash ROE reduced by the Dividend
Payout Ratio
Double Leverage is defined as the bank holding company's Investments In
Subsidiaries/Consolidated Shareholders Equity
37
<PAGE> 40
SHAREHOLDER ANALYSIS
OVERLAPPING INSTITUTIONAL SHAREHOLDER ANALYSIS
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B COMBINED
------------------- ----------------- ------------------- PRO FORMA
INSTITUTION SHARES % SHARES % SHARES % OWNERSHIP(1)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 DELPHI MANAGEMENT 1,319,308 3.1% 113,800 0.3% 1,433,108 3.4% 3.5%
2 HARRIS ASSOCIATES 1,185,938 2.8% -- 0.0% 1,185,938 2.8% 3.2%
3 OAKMARK 1,150,001 2.7% -- 0.0% 1,150,001 2.7% 3.1%
4 PIMCO ADVISORS 1,075,306 2.5% -- 0.0% 1,075,306 2.5% 2.9%
5 DIMENSIONAL FUND ADVISORS 511,016 1.2% 488,652 1.1% 999,668 2.3% 1.4%
6 PNC BANK CORP. 636,346 1.5% 203,574 0.5% 839,920 2.0% 1.7%
7 GUARDIAN 539,400 1.3% 276,920 0.6% 816,320 1.9% 1.4%
8 BLACKROCK FUNDS 489,279 1.1% 203,003 0.5% 692,282 1.6% 1.3%
9 NY STATE TEACHERS RET. SYSTEM 415,039 1.0% 249,413 0.6% 664,452 1.6% 1.1%
10 LEGG MASON 655,237 1.5% -- 0.0% 655,237 1.5% 1.8%
11 RUSSELL (FRANK) 581,354 1.4% 55,300 0.1% 636,654 1.5% 1.6%
12 BARCLAYS BANK PLC 323,291 0.8% 173,550 0.4% 496,841 1.2% 0.9%
13 CITIGROUP 371,826 0.9% 43,497 0.1% 415,323 1.0% 1.0%
14 CONSULTING GROUP CAPITAL MARKETS 360,813 0.8% 37,143 0.1% 397,956 0.9% 1.0%
15 DFA 148,603 0.3% 155,483 0.4% 304,086 0.7% 0.4%
16 CITISELECT 190,377 0.4% 109,025 0.3% 299,402 0.7% 0.5%
17 VANGUARD GROUP 110,984 0.3% 144,693 0.3% 255,677 0.6% 0.3%
18 TIAA CREF 158,183 0.4% 95,500 0.2% 253,683 0.6% 0.4%
19 STATE STREET CORP. -- 0.0% 175,289 0.4% 175,289 0.4% 0.0%
20 MELLON BANK 65,337 0.2% 99,490 0.2% 164,827 0.4% 0.2%
21 INTERVEST -- 0.0% 144,312 0.3% 144,312 0.3% 0.0%
22 PAINEWEBBER 127,948 0.3% -- 0.0% 127,948 0.3% 0.3%
23 TAUNUS CORP. -- 0.0% 107,540 0.3% 107,540 0.3% 0.0%
24 TRINITY INVESTMENT MANAGEMENT CORP -- 0.0% 102,400 0.2% 102,400 0.2% 0.0%
25 FIDELITY -- 0.0% 71,000 0.2% 71,000 0.2% 0.0%
TOTAL TOP 25 24.4% 7.1% 31.5% 28.0%
</TABLE>
(1) Assumes 87% economic interest for Class A Shares
Source: Vickers
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