<PAGE> 1
EXHIBIT (c)(2)
Presentation to the Special Committee
of the Board of Directors of:
[BankAtlantic Logo]
January 13, 2000
[Keefe, Bruyette & Woods, Inc
Logo]
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Tab
---
<S> <C>
Executive Summary 1
Market Overview 2
Review of BankAtlantic: Relative Performance and Perception 3
Financial Analysis 4
KBW Research Notes on BankAtlantic 5
</TABLE>
1
<PAGE> 3
EXECUTIVE SUMMARY
2
<PAGE> 4
OVERVIEW
- KBW has been requested by a Special Committee of the Board of Directors
of BankAtlantic to provide our opinion as investment bankers as to the
fairness, from a financial point of view, to the shareholders of the
Class A and Class B shares of BankAtlantic of the proposed transaction
(the "Transaction").
- For the purpose of our opinion, the Transaction is defined as follows:
- Through a "cash-out merger", BankAtlantic (the "Company")
proposes to acquire all of the outstanding Class B shares and
"in the money" options of BankAtlantic, excluding shares held
by BFC at offer value of $6.00 per share.
- After completing the transaction, 100% of the Class B voting
shares will be held by and controlled by BFC.
- Class A shareholders will retain all outstanding shares and a
related economic interest in BankAtlantic.
<TABLE>
<CAPTION>
OWNERSHIP AT 12/31/99 PROFORMA OWNERSHIP
--------------------- ----------------------
<S> <C> <C> <C> <C>
CLASS A SHARES OUTSTANDING
Class A Shares held by Abdo/Levan/BFC 8,309,721 25.6% 8,309,721 25.6%
Other Class A Shares Outstanding 24,108,749 74.4% 24,108,749 74.4%
------------------- ----------------------
Total Class A Shares Outstanding 32,418,470 100.0% 32,418,470 100.0%
Class A Shares Outstanding/Total Shares Outstanding 76.0% 86.9%
CLASS B SHARES OUTSTANDING
Class B Shares held by BFC and affiliates 4,876,124 47.5% 4,876,124 100.0%
Other Class B Shares 5,388,392 52.5% - 0.0%
-------------------- ----------------------
Total Class B Shares 10,264,516 100.0% 4,876,124 100.0%
Class B Shares/Total Shares Outstanding 24.0% 13.1%
</TABLE>
3
<PAGE> 5
PROCESS
- In rendering our opinion, KBW has reviewed among other things,
- Annual reports to stockholders and Annual Report on Form 10-K
of BANC/BBX
- Certain interim reports to stockholders and Quarterly Reports
on Form 10-Q
- Certain internal financial analysis and forecasts of
BankAtlantic prepared by management
- Held discussions with members of senior management of BankAtlantic
regarding:
- Past and current business operations
- Regulatory relationships
- Financial condition
- Future prospects of BankAtlantic
- Compared certain financial and stock market information for BANC/BBX
with similar information for certain other companies with
publicly-traded securities.
- Performed other studies and analyses that we considered appropriate,
including:
- Pro Forma effects of the transaction and
- Discounted cash flow analysis.
4
<PAGE> 6
TRANSACTION PROPOSAL AND RATIONALE
PROPOSAL
The Company proposes that each outstanding share of the Class B common
stock and "in the money" options, other than shares held in the
Treasury or by BFC or any affiliate of BFC, will be converted into the
right to receive $6.00 per share in cash.
RATIONALE
THE SHAREHOLDERS OF THE CLASS A AND CLASS B SHARES BOTH SUFFER AS A
RESULT OF HAVING TWO PUBLICLY-TRADED COMMON EQUITY SECURITIES
- Confuses investors and analysts interested in BankAtlantic
(different EPS, etc.)
- Creates an additional decision for investors interested in
BankAtlantic (Voting v. Non-Voting, Voting v. Higher Dividend,
NYSE v. NASDAQ, etc.)
- Reduces liquidity, particularly for Class B shareholders
- Increases reporting requirements by the Company (dual EPS
shares requirements, NYSE and NASDAQ requirements)
5
<PAGE> 7
TRANSACTION JUSTIFICATION
CLASS B SHAREHOLDERS
FAIRNESS: The consideration received by Class B Shareholders pursuant
to the proposal outlined above is fair from an financial point of view
to such shareholders, based upon the following:
- Peer Group Performance and Trading Analysis: BankAtlantic's
current market value relative to its earnings and book value
was in-line with its peers
- Premiums Paid Analysis: This analysis compared the premiums to
market value received by shareholders in similar transactions.
We relied primarily on premiums paid in "Going Private"
transactions in which that acquiror held a preexisting,
controlling stake in the public target company. Secondarily,
we reviewed recent dutch auction tender offers as a check.
- On-going Participation: We also considered the fact that
unlike a pure "going private" transaction, Class B
shareholders' have the ability to retain an economic interest
in BankAtlantic through the purchase of Class A shares.
CLASS A SHAREHOLDERS
FAIRNESS: The transaction proposal outlined above is fair from an
financial point of view to holders of Class A shares , based upon the
following:
- Accretion/Dilution Analysis: This analysis determined the
impact of the earnings per share for holders of Class A shares
given the proposed transaction and the Company's internal
projections.
- Discounted Cash Flow Analysis: This analysis compared the
pre-deal long term value to A's relative to the post-deal long
term value
- Market Trading Analysis: Class A shareholders will also
benefit from the simplified ownership structure and the likely
increase in average trading volume and improve liquidity.
6
<PAGE> 8
MARKET OVERVIEW
7
<PAGE> 9
MARKET OVERVIEW
IN GENERAL, FINANCIAL STOCKS REMAIN OUT OF FAVOR
IN PARTICULAR, SMALL CAP FINANCIALS HAVE BEEN ALL BUT
ABANDONED
Macroeconomic
uncertainty; Interest Rates,
Revenue Growth,
Asset Quality
Cash Earnings concept not
fully appreciated
Broader market (technology,
internet) rally has outpaced
financial equities
[PICTURE]
Merger Malaise
First Union,
Bank One,
Regions/ First Commercial
Redemptions from mutual
funds has caused demand
to all but dry-up
Earnings disappointments
are severely punished
8
<PAGE> 10
RELATIVE PRICE PERFORMANCE IN 1999 - BROADER MARKET VERSUS BANKING INDICES
Daily closing price data from January 10, 1999 to January 10, 2000
[CHART]*
* Chart indicates the relative price performance of the Keefe Bank Index,
NASDAQ Bank Index, S&P 500 and NASDAQ Composite from 1/11/99 through
1/6/00.
9
<PAGE> 11
PRICE PERFORMANCE OF INSTITUTIONS IN KEEFE BANK INDEX (PHLX: BKX)
<TABLE>
<CAPTION>
YTD
COMMON 01/10/00 COMMON 12/31/98 PRICE
SHARES OUT PRICE MARKET CAP PRICE PERFORMANCE
RANK INSTITUTION TICKER (MILLION) ($) ($,MILLION) ($) (%)
---- ----------- ------ ----------- --------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
1 Citigroup C 3,366.8 52.00 175,074 33.13 57.0%
2 J P Morgan & Co Inc JPM 174.9 120.31 21,040 105.06 14.5%
3 Chase Manhattan Corp CMB 823.2 71.50 58,859 70.63 1.2%
4 Wells Fargo & Co WFC 1,649.8 37.88 62,485 39.94 -5.2%
5 Fifth Third Bancorp FITB 274.9 66.03 18,154 71.31 -7.4%
6 State Street Corporation STT 159.9 71.94 11,504 70.13 2.6%
7 Mellon Financial Corp MEL 508.7 30.94 15,736 34.38 -10.0%
8 Zions Bancorporation ZION 79.0 52.66 4,159 62.38 -15.6%
9 Bank of New York Co Inc BK 735.9 36.19 26,630 40.25 -10.1%
10 SunTrust Banks Inc STI 319.9 59.50 19,033 76.50 -22.2%
11 PNC Bank Corp PNC 294.0 41.56 12,218 54.00 -23.0%
12 Bank of America Corp. BAC 1,710.0 47.00 80,372 60.13 -21.8%
13 FleetBoston Financial Corp. FBF 922.2 31.81 29,338 44.69 -28.8%
14 Wachovia Corp WB 202.7 65.13 13,204 87.44 -25.5%
15 KeyCorp KEY 448.9 20.75 9,315 32.00 -35.2%
16 Summit Bancorp SUB 174.8 28.13 4,915 43.69 -35.6%
17 BB&T Corporation BBT 318.2 26.06 8,293 40.31 -35.3%
18 Comerica Inc CMA 156.3 42.75 6,683 68.19 -37.3%
19 U. S. Bancorp USB 730.4 22.00 16,068 35.50 -38.0%
20 Washington Mutual Inc. WM 574.4 24.68 14,174 38.38 -35.7%
21 Firstar Corporation FSR 981.2 21.56 21,158 31.00 -30.4%
22 National City Corp NCC 616.6 22.56 13,911 36.25 -37.8%
23 Bank One Corp ONE 1,147.0 30.25 34,697 51.06 -40.8%
24 First Union Corp FTU 958.4 32.94 31,569 60.81 -45.8%
--------------
AVERAGE: -19.4%
<CAPTION>
1999 1999
KBW KBW ANNUAL DIVIDEND
EPS EST. P/E EST. DIVIDEND YIELD
RANK INSTITUTION ($) (X) ($) (%)
---- ----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
1 Citigroup 2.80 18.6 x 0.56 1.08%
2 J P Morgan & Co Inc 9.75 12.3 x 4.00 3.32%
3 Chase Manhattan Corp 5.60 12.8 x 1.64 2.29%
4 Wells Fargo & Co 2.23 17.0 x 0.80 2.11%
5 Fifth Third Bancorp 2.42 27.3 x 0.96 1.45%
6 State Street Corporation 3.00 24.0 x 0.64 0.89%
7 Mellon Financial Corp 1.82 17.0 x 0.80 2.59%
8 Zions Bancorporation 2.75 19.1 x 1.16 2.20%
9 Bank of New York Co Inc 1.68 21.5 x 0.64 1.77%
10 SunTrust Banks Inc 3.90 15.3 x 1.38 2.32%
11 PNC Bank Corp 3.93 10.6 x 1.80 4.33%
12 Bank of America Corp. 4.65 10.1 x 2.00 4.26%
13 FleetBoston Financial Corp. 2.90 11.0 x 1.20 3.77%
14 Wachovia Corp 4.95 13.2 x 2.16 3.32%
15 KeyCorp 2.33 8.9 x 1.04 5.01%
16 Summit Bancorp 2.60 10.8 x 1.32 4.69%
17 BB&T Corporation 1.95 13.4 x 0.80 3.07%
18 Comerica Inc 4.13 10.4 x 1.44 3.37%
19 U. S. Bancorp 2.11 10.4 x 0.78 3.55%
20 Washington Mutual Inc. 3.25 7.6 x 1.04 4.21%
21 Firstar Corporation 1.25 17.3 x 0.65 3.01%
22 National City Corp 2.20 10.3 x 1.14 5.05%
23 Bank One Corp 3.45 8.8 x 1.68 5.55%
24 First Union Corp 3.40 9.7 x 1.88 5.71%
----------------- -----------------
14.0 X 3.29%
</TABLE>
10
<PAGE> 12
RELATIVE BANK STOCK VALUATION - KBI VERSUS S&P 500 RELATIVE P/E MULTIPLE
SINCE 1980, THE RELATIVE PRICE/EARNINGS MULTIPLE HAS AVERAGED 59%. MOST
RECENTLY, THE RELATIVE P/E WAS 49%.
[CHART]*
* Chart indicates the relative price/earnings multiple from 1961 to 1999.
11
<PAGE> 13
SUMMARY OF NATIONAL BANK M&A SINCE 1990
Data as of: December 27, 1999
NUMBER OF DEALS ANNOUNCED
[GRAPH]*
PRICE TO BOOK VALUE PER SHARE
[GRAPH]*
DEAL VALUE ($BILLIONS)
[GRAPH]*
PRICE TO TRAILING 12 MONTHS EPS
[GRAPH]*
* Graphs indicate the: (i) Number of Deals Announced, (ii) Deal Value, (iii)
Price to Book Value Per Share, and (iv) Price to Trailing 12 Month EPS for
the years 1990 through 1999.
12
<PAGE> 14
SIGNIFICANT PROBLEMS WITH M&A EXECUTION
<TABLE>
<CAPTION>
ORIGINALLY CURRENT
FORCASTED ESTIMATED
EPS EPS DIFF.
ANNOUNCE COMPLETED 1999 1999 1999
BUYER SELLER DATE DATE ($) ($) (%)
----- ------ -------- --------- ---------- --------- ------
<S> <C> <C> <C> <C> <C> <C>
First Union Corp. CoreStates Financial Nov-97 Apr-98 $4.46 $3.40 -23.8%
Bank One Corp. First USA Jan-97 Jun-97 $4.23 $3.45 -18.4%
Bank One Corp. First Chicago NBD Apr-98 Oct-98 $4.23 $3.45 -18.4%
NationsBank Corp. Barnett Banks Inc. Aug-97 Jan-98 $5.67 $4.65 -18.0%
NationsBank Corp. BankAmerica Corp. Apr-98 Sep-98 $5.59 $4.65 -16.8%
First Bank System US Bancorp Mar-97 Aug-97 $2.47 $2.11 -14.6%
Washington Mutual HF Ahmanson & Co. Mar-98 Oct-98 $3.73 $3.25 -12.9%
National City Corp. First of America Dec-97 Mar-98 $2.37 $2.20 -7.2%
Household International Beneficial Corp. Apr-98 Jul-98 $3.20 $3.05 -4.7%
SunTrust Banks Inc. Crestar Financial Jul-98 Dec-98 $4.04 $3.90 -3.5%
Wells Fargo and Co. Norwest Corporation Jun-98 Nov-98 $2.23 $2.23 0.0%
Star Banc Corp Firstar Corp Jul-98 Nov-98 $1.13 $1.25 10.6%
</TABLE>
13
<PAGE> 15
EARNINGS ESTIMATE CHANGES
<TABLE>
<CAPTION>
BANKSCAN 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Estimates up 34 21 12 28 47 56 53 44
Estimates down 27 25 85 33 41 34 24 40
</TABLE>
<TABLE>
<CAPTION>
TOP 50 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Estimates up 6 6 10 3 8 12 15 7
Estimates down 15 6 18 18 10 9 9 16
</TABLE>
14
<PAGE> 16
LIQUIDITY DISCOUNT - 1999 PERFORMANCE
<TABLE>
<CAPTION>
MARKET CAP % CHANGE
MARKET CAP RANGE # OF STOCKS FOR 1999 MKT/BOOK 2000 P/E
---------- ----- ----------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Mega $15B+ 21 -0.6% 299% 14.2x
Large $5B to $15B 23 -13.0% 235% 11.9x
Mid $1.5B to $5B 31 -17.0% 227% 11.3x
Small $500M to $1.5B 45 -13.7% 191% 12.2x
Micro $500M- 75 -10.9% 157% 11.0x
</TABLE>
15
<PAGE> 17
REVIEW OF BANKATLANTIC: RELATIVE
PERFORMANCE AND PERCEPTION
<PAGE> 18
OVERVIEW
BANKATLANTIC'S STOCK PRICE HAS SUFFERED DUE TO FACTORS AFFECTING THE
OVERALL MARKET, THE COMPANY'S FUNDAMENTALS, AND CHALLENGES IT PRESENTS
TO ANALYSTS.
Overall market
- Financial market stock out of favor rates up, funding
costs higher, relevancy issues.
- End of pooling accounting imminent slowdown in post
2000 merger activity
- Larger acquiror disappointments have impacted
perception of sector
- Small capitalization stocks in all sectors are
discounted
Company fundamentals
- Complicated set of businesses
- Earnings estimates have declined (more than general
financial stocks)
Company perception
- Two classes of stock
- Control shareholder limits liquidity
- Persistent but varying valuation differentials on A
and B shares complicate analyst's job
17
<PAGE> 19
BBX VS. BANC STOCK PERFORMANCE
[GRAPH]*
* Graph compares both the stock volume and the share price of the Class A
common stock and the Class B common stock for the period from 12/31/98
through 12/14/99.
18
<PAGE> 20
1999 YTD RELATIVE PRICE PERFORMANCE OF BANC AND BBX VS. BANKING INDICES
Daily closing price data from January 10, 1999 to January 10, 2000
[GRAPH]*
* Graph compares the price performance of both the Class A common stock and
the Class B common stock with the Keefe Bank Index and the NASDAQ Bank
Index for the time period of 1/11/99 through 1/6/00.
19
<PAGE> 21
PEER GROUP PERFORMANCE
Data as of quarter ended September 30, 1999
<TABLE>
<CAPTION>
------ --------------------------------------------------------
EOP PROFITABILITY AND OVERHEAD RATIOS
------ --------------------------------------------------------
Operating
--------------- Efficiency
Assets ROA ROE NIM Ratio
Institution Symbol City State ($MM) (%) (%) (%) (%)
----------------------------- ------ --------------- ------ ------ ---- ----- ---- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BankAtlantic Bancorp, Inc. (B) BANC Fort Lauderdale FL 3,971 0.87 14.18 3.13 62.99
BankAtlantic Bancorp, Inc. (A) BBX Fort Lauderdale FL 3,971 0.87 14.18 3.13 62.99
----- ----- ----- -----
Golden State Bancorp, Inc. GSB San Francisco CA 55,806 0.55 21.52 2.17 54.05
Golden West Financial Corporation GDW Oakland CA 39,965 1.19 14.76 2.67 34.25
Bank United Corporation BNKU Houston TX 16,245 0.85 18.11 2.68 52.77
GreenPoint Financial Corporation GPT New York NY 15,485 1.63 12.12 4.08 46.97
Commercial Federal Corporation CFB Omaha NE 13,104 0.78 10.96 2.93 55.89
TCF Financial Corporation TCB Minneapolis MN 10,342 1.56 20.02 4.46 61.13
Webster Financial Corporation WBST Waterbury CT 8,997 1.10 17.56 3.25 53.52
Downey Financial Corp. DSL Newport Beach CA 8,501 0.85 13.04 2.74 58.31
Bay View Capital Corporation BVC San Mateo CA 5,946 0.66 10.07 3.20 59.23
MAF Bancorp, Inc. MAFB Clarendon Hills IL 4,427 1.14 14.13 2.86 46.54
BankUnited Financial Corporation BKUNA Coral Gables FL 4,078 0.36 7.63 1.89 64.31
Coastal Bancorp, Inc. CBSA Houston TX 2,967 0.51 11.33 2.78 61.96
InterWest Bancorp, Inc. IWBK Oak Harbor WA 2,575 0.92 13.33 3.74 64.74
First Washington Bancorp, Inc. FWWB Walla Walla WA 1,754 0.98 9.41 3.94 54.77
Superior Financial Corp. SUFI Fort Smith AR 1,570 0.79 11.55 2.99 66.28
----- ----- ----- -----
AVERAGE: 0.92 13.70 3.09 55.65
Median: 0.85 13.04 2.93 55.89
<CAPTION>
-----------------------------------------------------------
CAPITAL AND ASSET QUALITY
-----------------------------------------------------------
Common Tangible
Equity/ Common Eqty/ Reserves/ NCO/ NPA/
Assets Tng. Assets Loans Avg. Loans Loans+OREO
Institution (%) (%) (%) (%) (%)
----------------------------- ------- ------------ --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
BankAtlantic Bancorp, Inc. (B) 5.97 4.65 1.71 0.88 1.41
BankAtlantic Bancorp, Inc. (A) 5.97 4.65 1.71 0.88 1.41
----- ---- ---- ----- ----
Golden State Bancorp, Inc. 2.61 1.06 1.73 0.09 0.74
Golden West Financial Corporation 7.81 7.81 0.90 -0.01 1.01
Bank United Corporation 4.64 4.14 0.66 0.05 0.86
GreenPoint Financial Corporation 13.46 7.73 1.17 0.06 2.49
Commercial Federal Corporation 7.42 5.62 0.83 0.13 1.09
TCF Financial Corporation 7.88 6.30 0.73 0.39 0.64
Webster Financial Corporation 6.37 4.94 1.16 0.05 0.69
Downey Financial Corp. 6.07 6.02 0.47 0.07 0.46
Bay View Capital Corporation 6.54 4.43 1.02 0.57 0.33
MAF Bancorp, Inc. 7.92 6.60 0.46 0.03 0.54
BankUnited Financial Corporation 4.66 3.92 0.42 0.10 0.95
Coastal Bancorp, Inc. 4.51 3.59 0.81 0.09 1.46
InterWest Bancorp, Inc. 6.42 5.98 0.90 0.05 0.92
First Washington Bancorp, Inc. 10.20 8.18 1.10 0.06 0.64
Superior Financial Corp. 6.59 2.64 1.15 0.12 0.24
----- ---- ---- ----- ----
AVERAGE: 6.87 5.26 0.90 0.12 0.87
Median: 6.54 5.62 0.90 0.07 0.74
</TABLE>
20
<PAGE> 22
PEER GROUP PERFORMANCE
Data as of quarter ended September 30, 1999
<TABLE>
<CAPTION>
STOCK INFORMATION BOOK VALUE & MULTIPLES EARNINGS MULTIPLE - KBW ESTIMATES
----------------------------------- ------------------------------------
Stock Book Tangible Market/ Market/ 1999 Estimate 2000 Estimate
--------------- ----------------
Price ($) Value Book Book Tang Bk GAAP GAAP P/E GAAP GAAP P/E
Institution Symbol 01/10/00 ($) ($) (X) (X) ($) (X) ($) (X)
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BankAtlantic Bancorp, Inc. (B) BANC 5.00 5.67 4.36 0.88 1.15 0.56 8.9 0.58 8.6
BankAtlantic Bancorp, Inc. (A) BBX 4.13 5.67 4.36 0.73 0.95 0.60 6.9 0.63 6.5
----- ----- ----- ---- ---- ---- ---- ---- ----
Golden State Bancorp, Inc. GSB 15.38 10.50 4.19 1.46 3.67 2.21 7.0 2.40 6.4
Golden West Financial Corporation GDW 30.13 19.28 19.28 1.56 1.56 2.83 10.6 3.06 9.8
Bank United Corporation BNKU 24.17 23.22 20.64 1.04 1.17 3.70 6.5 4.14 5.8
GreenPoint Financial Corporation GPT 22.00 21.26 11.45 1.03 1.92 2.45 9.0 2.75 8.0
Commercial Federal Corporation CFB 15.94 16.43 12.20 0.97 1.31 1.90 8.4 2.10 7.6
TCF Financial Corporation TCB 23.50 9.84 7.73 2.39 3.04 2.00 11.8 2.25 10.4
Webster Financial Corporation WBST 23.53 15.05 11.50 1.56 2.05 2.45 9.6 2.68 8.8
Downey Financial Corp. DSL 19.19 18.33 18.18 1.05 1.06 2.08 9.2 2.25 8.5
Bay View Capital Corporation BVC 12.44 20.80 13.77 0.60 0.90 1.44 8.6 1.78 7.0
MAF Bancorp, Inc. MAFB 19.19 14.45 11.88 1.33 1.62 2.00 9.6 2.13 9.0
BankUnited Financial Corporation BKUNA 7.44 9.88 8.16 0.75 0.91 0.76 9.8 0.95 7.8
Coastal Bancorp, Inc. CBSA 15.75 16.54 12.12 0.95 1.30 1.82 8.7 2.00 7.9
InterWest Bancorp, Inc. IWBK 18.25 10.71 9.93 1.70 1.84 1.90 9.6 2.10 8.7
First Washington Bancorp, Inc. FWWB 15.00 16.92 13.28 0.89 1.13 1.56 9.6 1.73 8.7
Superior Financial Corp. SUFI 11.25 10.26 3.94 1.10 2.86 1.12 10.0 1.30 8.7
---- ---- ---- ----
AVERAGE: 1.23 1.75 9.2 8.2
MEDIAN: 1.05 1.56 9.6 8.5
<CAPTION>
-------------------------------------------------------------
STOCK INFORMATION DIVIDEND & LIQUIDITY
------------------------
Current Div. Market
Div. Yield Cap
Institution ($) (%) ($MM)
-------------------------------------------------------------
<S> <C> <C> <C>
BankAtlantic Bancorp, Inc. (B) 0.09 1.84 51
BankAtlantic Bancorp, Inc. (A) 0.10 2.45 134
---- ---- -----
Golden State Bancorp, Inc. 0.00 0.00 1,947
Golden West Financial Corporation 0.21 0.70 4,879
Bank United Corporation 0.74 3.06 784
GreenPoint Financial Corporation 0.88 4.00 2,408
Commercial Federal Corporation 0.28 1.76 943
TCF Financial Corporation 0.75 3.19 1,947
Webster Financial Corporation 0.48 2.04 896
Downey Financial Corp. 0.36 1.88 540
Bay View Capital Corporation 0.40 3.22 232
MAF Bancorp, Inc. 0.36 1.88 466
BankUnited Financial Corporation 0.00 0.00 136
Coastal Bancorp, Inc. 0.32 2.03 99
InterWest Bancorp, Inc. 0.56 3.07 282
First Washington Bancorp, Inc. 0.48 3.20 170
Superior Financial Corp. 0.00 0.00 113
----
AVERAGE: 2.00
MEDIAN: 2.03
</TABLE>
21
<PAGE> 23
PEER GROUP ANALYSIS
Based our analysis of BankAtlantic's fundamentals and growth prospects,
the Company's BANC stock looks fairly valued by the market relative to
its peers.
- BANC trades at or near the mid-point of its Peer
Group's Price/2000 Earnings ratio of 8.5x
- BANC could not be expected, at this time, to trade
above the mid-point for several reasons:
- Unproven strategic acquisition policy
- Greater risks of holding company's levered
capital structure and resultant debt service
requirements
- Small capitalization and liquidity market
discounts compounded by dual share class
structure
- Cuts in earning estimates
- Growth rate from 1999 to 2000 is slower than
peer group
- Dominant control shareholder
22
<PAGE> 24
STRATEGIC ACQUISITION POLICY
- Over the past few years BankAtlantic has pursued a diverse
acquisition strategy.
<TABLE>
<CAPTION>
ANNOUNCE.
DATE COMPANY BUSINESS DEAL VALUE
---------- -------------------------------- ---------------------- ----------
<S> <C> <C> <C>
9/3/99 Levitt Corporation Residential Developer $21.0
6/28/99 Southeast Research Partners Inc. Regional Broker/Dealer 1.9
3/2/98 Leasing Technology, Inc. Equipment Leasing 11.0
2/9/98 Ryan, Beck & Co., Inc. Regional Broker/Dealer 35.7
11/4/97 St. Lucie West Master Planned Real Estate 20.0
Community
</TABLE>
- These acquisitions are consistent with the industry's
strategic diversification. But they have added an element of
risk until the deals are digested and the strategy proves-out!
23
<PAGE> 25
DECLINE IN EARNING ESTIMATES
The market, especially for small cap stocks, has been quick to punish
and long to forget companies that have been unable to meet analyst
expectations.
2/1 Fourth quarter loss of $0.29 reported. With restructuring,
estimate for 1999 and 2000 maintained.
4/21 Rating lowered on Class B shares from Attractive to Market
Performer.
7/21 Second quarter earnings surpass estimates by $0.06 per share.
9/15 1999 and 2000 estimates reduced - primarily due to stock
dividend.
10/20 Third quarter earnings of $0.18 per share, four cents short of
KBW estimate. 1999 and 2000 estimates reduced.
12/10 KBW reduces fourth quarter estimate of $0.13 to $0.08.
24
<PAGE> 26
FINANCIAL ANALYSIS
<PAGE> 27
ASSIGNMENT AND OBJECTIVE
- KBW has been requested by a Special Committee of the Board of
Directors of BankAtlantic to provide our opinion as investment
bankers as to the fairness, from a financial point of view, to
the shareholders of the Class A and Class B shares of
BankAtlantic of the proposed transaction (the "Transaction").
- For the purpose of our opinion, the Transaction is defined as
follows:
- Through a "cash-out merger", BankAtlantic (the
"Company") proposes to acquire all of the outstanding
Class B shares and "in the money" options of
BankAtlantic, excluding shares held by BFC at offer
value of $6.00 per share.
- After completing the transaction, 100% of the Class B
voting shares will be held by and controlled by BFC.
- Class A shareholders will retain all outstanding
shares and a related economic interest in
BankAtlantic.
<TABLE>
<CAPTION>
OWNERSHIP AT 12/31/99 PROFORMA OWNERSHIP
---------------------------- ----------------------------
<S> <C> <C> <C> <C>
CLASS A SHARES OUTSTANDING
Class A Shares held by Abdo/Levan/BFC 8,309,721 25.6% 8,309,721 25.6%
Other Class A Shares Outstanding 24,108,749 74.4% 24,108,749 74.4%
---------------------------- ----------------------------
Total Class A Shares Outstanding 32,418,470 100.0% 32,418,470 100.0%
Class A Shares Outstanding/Total Shares Outstanding 76.0% 86.9%
CLASS B SHARES OUTSTANDING
Class B Shares held by BFC and affiliates 4,876,124 47.5% 4,876,124 100.0%
Other Class B Shares 5,388,392 52.5% -- 0.0%
---------------------------- ----------------------------
Total Class B Shares 10,264,516 100.0% 4,876,124 100.0%
Class B Shares/Total Shares Outstanding 24.0% 13.1%
</TABLE>
26
<PAGE> 28
PROCEDURE (TIMETABLE)
- In rendering out opinion, KBW has reviewed among other things,
- Annual reports to stockholders and Annual Report on
Form 10-K of BANC/BBX
- Certain interim reports to stockholders and Quarterly
Reports on Form 10-Q
- Certain internal financial analysis and forecasts of
BankAtlantic prepared by management
- Held discussions with members of senior management of
BankAtlantic regarding
- Past and current business operations
- Regulatory relationships
- Financial condition
- Future prospects of BankAtlantic
- Compared certain financial and stock market information for
BANC/BBX with similar information for certain other companies
with publicly-traded securities
- Reviewed the financial terms of certain recent transactions in
the banking industry and of companies with similar capital
structures
- Performed other studies and analyses that we considered
appropriate, including:
- Pro Forma effects of the transaction and
- Discounted cash flow analysis.
27
<PAGE> 29
ANALYSIS OF PROPOSED SHARE BUYBACK FROM B PERSPECTIVE
CLASS B SHARES
<TABLE>
<CAPTION>
% of Voting
Shares Rights
---------- -----------
<S> <C> <C>
CLASS B SHARES OUTSTANDING
Class B Shares held by BFC and affiliates 4,876,124 47.50%
Other Class B Shares 5,388,392 52.50%
---------- ------
Total Class B Shares 10,264,516 100.00%
Dividends: Each Class A share is entitled to 110% of the cash dividends
paid to each Class B share
</TABLE>
DETERMINATION OF "FAIR" PREMIUM
The consideration received by Class B Shareholders pursuant to the
proposal outlined above is fair from an financial point of view to such
shareholders, based upon the following:
- Peer Group Performance and Trading Analysis:
BankAtlantic's current market value relative to its
earnings and book value was consistent with its peers
- Premiums Paid Analysis: This analysis compared the
premiums to market value received by shareholders in
similar transactions. We relied primarily on premiums
paid in "Going Private" transactions in which the
acquiror held a preexisting, controlling stake in the
public target company. Secondarily, we reviewed
recent dutch auction tender offers as a check.
- On-going Participation: We also considered the fact
that unlike a pure "going private" transaction, Class
B shareholders' have the ability to retain an
economic interest in BankAtlantic through the
purchase of Class A shares.
28
<PAGE> 30
PEER GROUP PERFORMANCE
DATA AS OF QUARTER ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
STOCK INFORMATION BOOK VALUE & MULTIPLES
----------------------------------------------------------------------------------------------------------
STOCK BOOK TANGIBLE MARKET / MARKET/
PRICE ($) VALUE BOOK BOOK TANG BK
INSTITUTION SYMBOL 01/10/00 ($) ($) (X) (X)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BankAtlantic Bancorp, Inc. (B) BANC 5.00 5.67 4.36 0.88 1.15
BankAtlantic Bancorp, Inc. (A) BBX 4.13 5.67 4.36 0.73 0.95
----------------------------------------------------------------------------------------------------------
Golden State Bancorp, Inc. GSB 15.38 10.50 4.19 1.46 3.67
Golden West Financial Corporation GDW 30.13 19.28 19.28 1.56 1.56
Bank United Corporation BNKU 24.17 23.22 20.64 1.04 1.17
GreenPoint Financial Corporation GPT 22.00 21.26 11.45 1.03 1.92
Commercial Federal Corporation CFB 15.94 16.43 12.20 0.97 1.31
TCF Financial Corporation TCB 23.50 9.84 7.73 2.39 3.04
Webster Financial Corporation WBST 23.53 15.05 11.50 1.56 2.05
Downey Financial Corp. DSL 19.19 18.33 18.18 1.05 1.06
Bay View Capital Corporation BVC 12.44 20.80 13.77 0.60 0.90
MAF Bancorp, Inc. MAFB 19.19 14.45 11.88 1.33 1.62
BankUnited Financial Corporation BKUNA 7.44 9.88 8.16 0.75 0.91
Coastal Bancorp, Inc. CBSA 15.75 16.54 12.12 0.95 1.30
InterWest Bancorp, Inc. IWBK 18.25 10.71 9.93 1.70 1.84
First Washington Bancorp, Inc. FWWB 15.00 16.92 13.28 0.89 1.13
Superior Financial Corp. SUFI 11.25 10.26 3.94 1.10 2.86
----------------
AVERAGE: 1.23 1.75
Median: 1.05 1.56
<CAPTION>
STOCK INFORMATION EARNINGS MULTIPLE - KBW ESTIMATES DIVIDEND & LIQUIDITY
-------------------------------------------------------------------------
1999 ESTIMATE 2000 ESTIMATE
------------------ ----------------- CURRENT DIV. MARKET
GAAP GAAP P/E GAAP GAAP P/E DIV. YIELD CAP
INSTITUTION ($) (X) ($) (X) ($) (%) ($MM)
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BankAtlantic Bancorp, Inc. (B) 0.56 8.9 0.58 8.6 0.09 1.84 51
BankAtlantic Bancorp, Inc. (A) 0.60 6.9 0.63 6.5 0.10 2.45 134
-----------------------------------------------------------------------------------------------------------------------
Golden State Bancorp, Inc. 2.21 7.0 2.40 6.4 0.00 0.00 1,947
Golden West Financial Corporation 2.83 10.6 3.06 9.8 0.21 0.70 4,879
Bank United Corporation 3.70 6.5 4.14 5.8 0.74 3.06 784
GreenPoint Financial Corporation 2.45 9.0 2.75 8.0 0.88 4.00 2,408
Commercial Federal Corporation 1.90 8.4 2.10 7.6 0.28 1.76 943
TCF Financial Corporation 2.00 11.8 2.25 10.4 0.75 3.19 1,947
Webster Financial Corporation 2.45 9.6 2.68 8.8 0.48 2.04 896
Downey Financial Corp. 2.08 9.2 2.25 8.5 0.36 1.88 540
Bay View Capital Corporation 1.44 8.6 1.78 7.0 0.40 3.22 232
MAF Bancorp, Inc. 2.00 9.6 2.13 9.0 0.36 1.88 466
BankUnited Financial Corporation 0.76 9.8 0.95 7.8 0.00 0.00 136
Coastal Bancorp, Inc. 1.82 8.7 2.00 7.9 0.32 2.03 99
InterWest Bancorp, Inc. 1.90 9.6 2.10 8.7 0.56 3.07 282
First Washington Bancorp, Inc. 1.56 9.6 1.73 8.7 0.48 3.20 170
Superior Financial Corp. 1.12 10.0 1.30 8.7 0.00 0.00 113
------ ------ -----
AVERAGE: 9.2 8.2 2.00
Median: 9.6 8.5 2.03
</TABLE>
29
<PAGE> 31
PEER GROUP PERFORMANCE
Data as of quarter ended September 30, 1999
<TABLE>
<CAPTION>
------ -----------------------------------------
EOP PROFITABILITY AND OVERHEAD RATIOS
-------------------------------------------------------------------------------------------------------------------------------
OPERATING
------------- EFFICIENCY
ASSETS ROA ROE NIM RATIO
INSTITUTION SYMBOL CITY STATE ($MM) (%) (%) (%) (%)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BankAtlantic Bancorp, Inc. (B) BANC Fort Lauderdale FL 3,971 0.87 14.18 3.13 62.99
BankAtlantic Bancorp, Inc. (A) BBX Fort Lauderdale FL 3,971 0.87 14.18 3.13 62.99
-------------------------------------------------------------------------------------------------------------------------------
Golden State Bancorp, Inc. GSB San Francisco CA 55,806 0.55 21.52 2.17 54.05
Golden West Financial Corporation GDW Oakland CA 39,965 1.19 14.76 2.67 34.25
Bank United Corporation BNKU Houston TX 16,245 0.85 18.11 2.68 52.77
GreenPoint Financial Corporation GPT New York NY 15,485 1.63 12.12 4.08 46.97
Commercial Federal Corporation CFB Omaha NE 13,104 0.78 10.96 2.93 55.89
TCF Financial Corporation TCB Minneapolis MN 10,342 1.56 20.02 4.46 61.13
Webster Financial Corporation WBST Waterbury CT 8,997 1.10 17.56 3.25 53.52
Downey Financial Corp. DSL Newport Beach CA 8,501 0.85 13.04 2.74 58.31
Bay View Capital Corporation BVC San Mateo CA 5,946 0.66 10.07 3.20 59.23
MAF Bancorp, Inc. MAFB Clarendon Hills IL 4,427 1.14 14.13 2.86 46.54
BankUnited Financial Corporation BKUNA Coral Gables FL 4,078 0.36 7.63 1.89 64.31
Coastal Bancorp, Inc. CBSA Houston TX 2,967 0.51 11.33 2.78 61.96
InterWest Bancorp, Inc. IWBK Oak Harbor WA 2,575 0.92 13.33 3.74 64.74
First Washington Bancorp, Inc. FWWB Walla Walla WA 1,754 0.98 9.41 3.94 54.77
Superior Financial Corp. SUFI Fort Smith AR 1,570 0.79 11.55 2.99 66.28
---- ----- ---- -----
AVERAGE: XXXX XXXX XX XXX 0.92 13.70 3.09 55.65
Median: XXXX XXXX XX XXX 0.85 13.04 2.93 55.89
<CAPTION>
CAPITAL AND ASSET QUALITY
---------------------------------------------------------
COMMON TANGIBLE
EQUITY / COMMON EQTY/ RESERVES/ NCO/ NPA/
ASSETS TNG. ASSETS LOANS AVG. LOANS LOANS+OREO
INSTITUTION (%) (%) (%) (%) (%)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BankAtlantic Bancorp, Inc. (B) 5.97 4.65 1.71 0.88 1.41
BankAtlantic Bancorp, Inc. (A) 5.97 4.65 1.71 0.88 1.41
----------------------------------------------------------------------------------------------------
Golden State Bancorp, Inc. 2.61 1.06 1.73 0.09 0.74
Golden West Financial Corporation GDW 7.81 7.81 0.90 -0.01 1.01
Bank United Corporation 4.64 4.14 0.66 0.05 0.86
GreenPoint Financial Corporation 13.46 7.73 1.17 0.06 2.49
Commercial Federal Corporation 7.42 5.62 0.83 0.13 1.09
TCF Financial Corporation 7.88 6.30 0.73 0.39 0.64
Webster Financial Corporation 6.37 4.94 1.16 0.05 0.69
Downey Financial Corp. 6.07 6.02 0.47 0.07 0.46
Bay View Capital Corporation 6.54 4.43 1.02 0.57 0.33
MAF Bancorp, Inc. 7.92 6.60 0.46 0.03 0.54
BankUnited Financial Corporation 4.66 3.92 0.42 0.10 0.95
Coastal Bancorp, Inc. 4.51 3.59 0.81 0.09 1.46
InterWest Bancorp, Inc. 6.42 5.98 0.90 0.05 0.92
First Washington Bancorp, Inc. 10.20 8.18 1.10 0.06 0.64
Superior Financial Corp. 6.59 2.64 1.15 0.12 0.24
----- ---- ---- ---- ----
AVERAGE: 6.87 5.26 0.90 0.12 0.87
Median: 6.54 5.62 0.90 0.07 0.74
</TABLE>
30
<PAGE> 32
PREMIUMS PAID ANALYSIS
We analyzed the implied premium or discount paid or proposed to be paid in
acquisitions relative to recent public market pre-announcement date trading
prices for two groups of announced transactions since January 1, 1997:
- Primary Comparables Group: 11 "going private" transactions involving
acquirors that were deemed to have effective control over the target
at the time of acquisition with an equity value of $15 million or
more. The range of premiums paid was 4.3% to 57.9% with a median of
25.3% and an average of 27.6%.
- Additional Reference Group: 13 "dutch tender auctions" of more than 1%
of the outstanding shares involving financial banking institutions.
The range of premiums paid was 1.0% to 24.9% with a median of 11.8%
and an average of 12.8%.
While neither group includes transactions that are exactly the same as the
proposed Transaction, the two groups provide a good range of premiums paid to
apply to the proposed Transaction
- Unlike a "going private" transaction, Class B shareholders may elect
to retain an economic interest in BankAtlantic through the purchase of
Class A shares
- Unlike a "dutch tender auction", if the proposed Transaction is
ratified by the vote of the Class A and Class B shareholders,
shareholders will be compelled to surrender their shares.
31
<PAGE> 33
PREMIUMS PAID ANALYSIS
The following is a summary of the premiums paid analysis detailing the medians
and mean paid of the groups of analyzed transactions and BANC implied value
based on these premiums.
<TABLE>
<CAPTION>
"GOING PRIVATE" TRANSACTIONS -
ACQUIROR HAS EFFECTIVE CONTROL
IMPLIED PREMIUM IMPLIED VALUE IMPLIED VALUE IMPLIED PREMIUM
IN TRANSACTION BASED ON MEAN BASED ON MEDIAN -----------------------------------
PRICING PERIOD BASED ON $6 PERCENTAGE PERCENTAGE MINIMUM MEAN MEDIAN MAXIMUM
--------------------------------------------- --------------- ------------- --------------- ------- ---- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Day Prior to Announce - (5.13) 17.1% $ 6.54 $ 6.42 4.3% 27.6% 25.3% 57.9%
1 Day Prior to Committee Deliberation ($5.00) 20.0% $ 6.38 $ 6.27 4.3% 27.6% 25.3% 57.9%
At Committee Deliberation - (4.81) 24.7% $ 6.14 $ 6.03 4.3% 27.6% 25.3% 57.9%
<CAPTION>
IMPLIED PREMIUM IMPLIED VALUE IMPLIED VALUE DUTCH AUCTION TENDER GROUP
IN TRANSACTION BASED ON MEAN BASED ON MEDIAN -----------------------------------
PRICING PERIOD BASED ON $6 PERCENTAGE PERCENTAGE MINIMUM MEAN MEDIAN MAXIMUM
--------------------------------------------- --------------- ------------- --------------- ------- ---- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Day Prior to Announce - (5.13) 17.1% $ 5.84 $ 5.73 1.1% 13.9% 11.8% 24.9%
1 Day Prior to Committee Deliberation ($5.00) 20.0% $ 6.47 $ 6.35 1.1% 13.9% 11.8% 24.9%
At Committee Deliberation - (4.81) 24.7% $ 5.48 $ 5.38 1.1% 13.9% 11.8% 24.9%
</TABLE>
32
<PAGE> 34
PREMIUMS PAID ANALYSIS: "GOING-PRIVATE" TRANSACTIONS
<TABLE>
<CAPTION>
PREMIUM PAID
OVER
MARKET PRICE
-----------------------
DEAL DEAL VALUE 1 DAY AVG. 30 DAYS
PRE-TRANSACTION PERCENT VALUE PER SHARE -----------------------
BUYER TARGET OWNERSHIP ACQUIRED ($M) ($) PRIOR TO ANNOUNCEMENT
------------------- -------------------------------- --------------- -------- ------ ---------- -----------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Concord Fabrics Concord Fabrics 63.00% 37.00% 28.0 7.88 40.0% 37.7%
Mgmt/Investor Group Kentek Information Systems 24.47% 75.53% 39.0 8.29 8.7% 14.1%
Mgmt/Investor Group Rock Bottom Restaurants 28.00% 72.00% 80.6 10.00 18.5% 18.3%
Mgmt/Investor Group Enstar Inc. 65.00% 35.00% 37.1 12.50 56.3% 56.6%
Mgmt/Investor Group Equitrac Corp. 40.10% 59.90% 74.3 21.00 4.3% 9.7%
PH II Inc. THT Inc. 46.00% 54.00% 15.3 3.75 57.9% 52.4%
Mgmt/Investor Group Lion Brewery Inc. 40.20% 59.80% 18.3 4.70 25.3% 22.7%
Investor Group Cinergies Pictures Entertainment 51.79% 48.21% 16.3 2.52 24.1% 54.6%
Restaurant Co. Perkins Family Restaurants 48.00% 52.00% 76.3 14.00 28.7% 30.6%
Investor Group/Mgmt Seaman Furniture Co. 80.00% 20.00% 45.6 25.05 26.8% 31.1%
Anthem Inc. Acordia Inc. 66.80% 33.20% 193.2 40.00 12.7% 19.2%
----------------------------------------------
AVERAGE 27.6% 31.6%
MEDIAN 25.3% 30.6%
HIGH 57.9% 56.6%
LOW 4.3% 9.7%
----------------------------------------------
</TABLE>
33
<PAGE> 35
PREMIUMS PAID ANALYSIS - DUTCH AUCTION TENDERS
<TABLE>
<CAPTION>
REPURCHASE DETAILS TENDER RANGE PREMIUM OFFERED(*) COMPLETION DETAILS
ANN. ------------------ -------------- ------------------ -------- ------------------ EFFECTIVE
COMPANY DATE SHARES % LOW HI LOW HI DATE SHARES PRICE PREMIUM
------------------------------- -------- ------------------ -------------- ------------------ -------- ------------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
First Merchants Corp 11/22/99 1,200,000 9.9% $26.00 $28.00 12.7% 21.4% 12/27/99 1,130,669 $28.00 21.4%
Bancfirst Corporation 5/3/99 1,000,000 10.7% $34.00 $38.00 -2.9% 8.6% 6/14/99 1,186,502 $38.00 8.6%
EFC Bancorp, Inc. 4/23/99 1,779,233 24.0% $10.00 $12.00 -1.2% 18.5% 6/11/99 709,544 $12.00 18.5%
First Banks Inc. 12/30/98 400,000 14.9% $16.50 $21.00 -1.8% 24.9% 2/3/99 314,848 $21.00 24.9%
Peekskill Financial Corporation 12/18/98 800,000 28.0% $14.75 $16.75 5.4% 19.6% 2/2/99 800,400 $16.75 19.6%
WesterFed Financial Corp. 11/20/98 220,000 20.0% $18.00 $20.00 0.0% 11.1% 12/28/98 1,082,854 $20.00 11.1%
Klamath First Bancorp, Inc. 10/9/98 1,983,353 20.0% $18.00 $20.00 7.5% 19.4% 1/15/99 1,983,000 $19.50 16.4%
First Commonwealth 7/13/98 2,000,000 6.5% $23.00 $26.00 -2.1% 10.6% 10/5/99 1,909,710 $26.00 10.6%
First Southern Bancshares 6/30/98 275,000 18.7% $12.75 $14.00 8.5% 19.1% 10/1/99 307,871 $13.50 14.9%
S&T Bancorp 1/20/98 1,500,000 11.0% $46.00 $49.00 4.0% 10.7% 2/23/98 440,268 $49.00 10.7%
TF Financial Corp. 9/26/97 900,000 22.0% $22.50 $26.00 -3.2% 11.8% 10/27/98 1,064,083 $26.00 11.8%
Cortland First Financial 5/30/97 30,000 1.5% $21.00 $24.00 -5.6% 7.9% NA 30,500 $22.50 1.1%
Damen Financial Corp 2/14/97 850,000 22.7% $13.25 $14.75 0.0% 11.3% 4/2/97 523,400 $14.75 11.3%
------------------------------------------------------------------------------------------------------------------------------------
MEDIANS XXX XXX 18.7% XXX XXX 0.0% 11.8% XXX XXX XXX 11.8%
MEANS XXX XXX 16.1% XXX XXX 1.6% 15.0% XXX XXX XXX 13.9%
HIGHS XXX XXX 28.0% XXX XXX 12.7% 24.9% XXX XXX XXX 24.9%
LOWS XXX XXX 1.5% XXX XXX -5.6% 7.9% XXX XXX XXX 1.1%
---- ---- ---- ----
</TABLE>
(*) Premium offered to the closing price the day before the announcement of the
tender offer
34
<PAGE> 36
ANALYSIS OF PROPOSED SHARE BUYBACK FROM B PERSPECTIVE
- Class B shareholders will have the opportunity to reacquire an interest in
BankAtlantic after the transaction is executed through the purchase of
Class A shares.
<TABLE>
<S> <C>
Average Weekly Trading Volume - BBX Shares 464,788
Average Weekly Trading Volume - BANC Shares 152,224
---------
Assumed Weekly Trading Volume Demand in BankAtlantic 617,012
Assumed Blended Weekly Trading Volume after Transaction (1) 542,971
BANC shares sold in Transaction 5,305,098
as a % of BBX float 21.6%
Weeks to re-acquire interest in BankAtlantic (2) 9.8
</TABLE>
(1) Represents 88% of combined weekly trading volume in BankAtlantic.
(2) Assuming all BANC shares sold are reacquired as BBX Shares.
- Net Proceeds to reinvest:
<TABLE>
<S> <C>
Offer price for Class B share $ 6.00
Capital Gain (no basis assumed) 6.00
Capital gains (20%) 1.20
------
Net proceeds $ 4.80
Current price for Class A Share 4.06
Ratio 1.2
</TABLE>
35
<PAGE> 37
ANALYSIS OF PROPOSED SHARE BUYBACK FROM A PERSPECTIVE
<TABLE>
<CAPTION>
CLASS A SHARES % of Voting
Shares Rights
------------ ------
<S> <C> <C>
CLASS A SHARES OUTSTANDING
Class A Shares held by Alan Levan/BFC 8,309,721 0.0%
Other Class A Shares Outstanding 24,108,749 0.0%
Total Class A Shares Outstanding 32,418,470 0.0%
</TABLE>
Dividends: Each Class A share is entitled to 110% of the cash dividends
paid to each Class B share
FAIRNESS OF TRANSACTION
The transaction proposal is fair from a financial point of view to holders of
Class A shares, based upon the following:
- Accretion/Dilution Analysis: This analysis determined the impact of
the earnings per share for holders of Class A shares given the
proposed transaction and the Company's internal projections.
- Discounted Cash Flow Analysis: This analysis compared the pre-deal
long term value to A's relative to the post- deal long term value
- Market Trading Analysis: Class A shareholders will also benefit from
the simplified ownership structure and the likely increase average
trading volume and improve liquidity.
36
<PAGE> 38
CAPITALIZATION: BUYBACK ACTIVITY
REPURCHASE ACTIVITY OF 25 LARGEST BANKS
[GRAPH]*
* Graph indicates the repurchase activity, by quarter, of the 25 largest
banks from the first quarter of 1995 through the third quarter of 1999.
37
<PAGE> 39
LIQUIDITY ANALYSIS
Data as of quarter ended September 30, 1999
<TABLE>
<CAPTION>
STOCK INFORMATION SHARE VOLUME IN 1999
---------------------- -----------------------
Average
Stock Market Weekly Weekly/
Price ($) Cap Volume Shares Out
Institution Symbol 01/06/00 ($MM) (MM) (%)
--------------------------------- ------ --------- ------ ------- ----------
<S> <C> <C> <C> <C> <C>
BANKATLANTIC BANCORP, INC. (B) BANC 4.78 49 0.152 1.5
BANKATLANTIC BANCORP, INC. (A) BBX 4.06 132 0.465 1.4
--------------------------------- ---- ----- ----- ----- ---
Golden State Bancorp, Inc. GSB 15.75 1,995 2.020 1.6
Golden West Financial Corporation GDW 30.94 5,011 2.780 1.7
Bank United Corporation BNKU 24.00 779 0.909 2.8
GreenPoint Financial Corporation GPT 22.13 2,422 1.640 1.5
Commercial Federal Corporation CFB 16.63 984 0.813 1.4
TCF Financial Corporation TCB 22.94 1,900 1.160 1.4
Webster Financial Corporation WBST 23.06 878 0.920 2.4
Downey Financial Corp. DSL 19.31 544 0.215 0.8
Bay View Capital Corporation BVC 12.88 241 0.563 3.0
MAF Bancorp, Inc. MAFB 19.75 479 0.272 1.1
BankUnited Financial Corporation BKUNA 7.25 133 0.413 2.3
Coastal Bancorp, Inc. CBSA 16.00 101 0.082 1.3
InterWest Bancorp, Inc. IWBK 17.88 276 0.181 1.2
First Washington Bancorp, Inc. FWWB 14.63 166 0.129 1.1
Superior Financial Corp. SUFI 11.38 115 0.153 1.5
---
AVERAGE: 1.7
MEDIAN: 1.5
<CAPTION>
SHARE VOLUME IN 1999 RESEARCH
----------------------------------------------- ---------------------
Average PERCENTAGE FIRST CALL
Quarterly Quarterly/ Announced of Shares Provides Secular
Volume Shares Out Buyback Out Research Growth Rate
Institution Symbol (MM) (%) (Y/N) (%) (#) (%)
---------------------------------- ------ --------- ---------- --------- ---------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
BANKATLANTIC BANCORP, INC. (B) BANC 1.970 19.2 N NA 2 NA
BANKATLANTIC BANCORP, INC. (A) BBX 5.960 18.4 Y 10.8 3 9.0
---------------------------------- ------ ------ ---- - ---- -- ----
Golden State Bancorp, Inc. GSB 26.260 20.7 Y 12.5 10 13.0
Golden West Financial Corporation GDW 36.350 22.4 Y 3.4 12 11.5
Bank United Corporation BNKU 11.920 36.7 N NA 9 12.0
GreenPoint Financial Corporation GPT 21.260 19.4 Y 0.1 13 14.0
Commercial Federal Corporation CFB 10.600 17.9 Y 5.0 9 12.0
TCF Financial Corporation TCB 15.070 18.2 N NA 18 13.0
Webster Financial Corporation WBST 12.040 31.6 Y 5.7 11 10.0
Downey Financial Corp. DSL 2.810 10.0 N NA 7 16.0
Bay View Capital Corporation BVC 7.000 37.5 N NA 8 13.5
MAF Bancorp, Inc. MAFB 3.410 14.1 Y 3.1 8 8.5
BankUnited Financial Corporation BKUNA 5.240 28.6 N NA 3 7.5
Coastal Bancorp, Inc. CBSA 1.130 17.9 Y 15.9 4 NA
InterWest Bancorp, Inc. IWBK 2.390 15.5 Y 5.0 3 12.0
First Washington Bancorp, Inc. FWWB 1.660 14.7 Y 10.0 3 10.0
Superior Financial Corp. SUFI 1.840 18.3 Y 5.0 4 NA
---- ---- ----
AVERAGE: 21.6 6.6 11.8
MEDIAN: 18.3 5.0 12.0
</TABLE>
38
<PAGE> 40
IMPACT OF PROPOSED SHARE BUYBACK
<TABLE>
<CAPTION>
Dollars in millions, except per share amount STATUS QUO PROFORMA
------------ --------------------------------------------------
OFFER PRICE PER CLASS B SHARE $5.80 $6.00 $6.20 $6.40
-------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
SHARES OUTSTANDING:
Class A Shares (Basic) 32.418 32.418 32.418 32.418 32.418
Class A Options 3.587 3.587 3.587 3.587 3.587
Class A Convertible 17.868 17.868 17.868 17.868 17.868
Class A Shares (Diluted - excluding out-of-money A options) 50.287 50.287 50.287 50.287 50.287
Class B Shares (Basic) 10.265 4.876 4.876 4.876 4.876
-------- -------- -------- -------- --------
TRANSACTION COST:
Outstanding B Shares Repurchased 5.388 5.388 5.388 5.388 5.388
Cost of Outstanding Shares $ 31.253 $ 32.330 $ 33.408 $ 34.486
Transaction Fees 1.800 $ 1.800 $ 1.800 $ 1.800 $ 1.800
OPTIONS:
Options Exercised 1.763 1.763 1.763 1.763 1.763
Average Exercise Price 3.25 $ 3.25 $ 3.25 $ 3.25 $ 3.25
Net Cost of Options (pre-tax) $ 4.495 $ 4.848 $ 5.200 $ 5.553
TRANSACTION CONSIDERATION $ 37.5 $ 39.0 $ 40.4 $ 41.8
-------- -------- -------- --------
INCOME STATEMENT IMPACT:
Projected BankAtlantic 2000 Net Income $ 37.8 $ 37.8 $ 37.8 $ 37.8 $ 37.8
Capitalization of Restructuring Charge -- -- -- --
Incremental Goodwill Amort. Exp. (15 yrs) -- -- -- --
Amortization of transaction fees -- -- -- --
AT Interest Expense on Sub Note (10% PT) 0 -2.3 -2.4 -2.5 -2.6
-------- -------- -------- -------- --------
Pro Forma BankAtlantic GAAP Earnings $ 37.8 $ 35.5 $ 35.4 $ 35.3 $ 35.2
<CAPTION>
Dollars in millions, except per share amount PROFORMA
----------------------
OFFER PRICE PER CLASS B SHARE $6.60 $6.80
-------- --------
<S> <C> <C>
SHARES OUTSTANDING:
Class A Shares (Basic) 32.418 32.418
Class A Options 3.587 3.587
Class A Convertible 17.868 17.868
Class A Shares (Diluted - excluding out-of-money A options) 50.287 50.287
Class B Shares (Basic) 4.876 4.876
-------- --------
TRANSACTION COST:
Outstanding B Shares Repurchased 5.388 5.388
Cost of Outstanding Shares $ 35.563 $ 36.641
Transaction Fees $ 1.800 $ 1.800
OPTIONS:
Options Exercised 1.763 1.763
Average Exercise Price $ 3.25 $ 3.25
Net Cost of Options (pre-tax) $ 5.905 $ 6.258
TRANSACTION CONSIDERATION $ 43.3 $ 44.7
-------- --------
INCOME STATEMENT IMPACT:
Projected BankAtlantic 2000 Net Income $ 37.8 $ 37.8
Capitalization of Restructuring Charge -- --
Incremental Goodwill Amort. Exp. (15 yrs) -- --
Amortization of transaction fees -- --
AT Interest Expense on Sub Note (10% PT) -2.6 -2.7
-------- --------
Pro Forma BankAtlantic GAAP Earnings $ 35.2 $ 35.1
</TABLE>
39
<PAGE> 41
IMPACT OF PROPOSED SHARE BUYBACK
<TABLE>
<CAPTION>
$5.80 $6.00 $6.20
-------- -------- --------
<S> <C> <C> <C> <C>
DIVIDENDS:
Class A Dividend Advantage 110% 110% 110% 110%
Effective Class A Avg. Shares (dil) 55.315 55.315 55.315 55.315
Effective Class B Avg. Shares (dil) 10.265 4.876 4.876 4.876
-------- -------- -------- --------
Net Income Allocation %: Class A 84.3% 91.9% 91.9% 91.9%
Net Income Allocation %: Class B 15.7% 8.1% 8.1% 8.1%
Dividend Payout Ratio 18% 19% 19% 19%
Class A Dividend Per Share $ 0.11 $ 0.12 $ 0.12 $ 0.12
Class B Dividend Per Share $ 0.10 $ 0.11 $ 0.11 $ 0.11
-------- -------- -------- --------
Dividend: Class A $ 5.74 $ 6.23 $ 6.23 $ 6.23
Dividend: Class B $ 1.06 $ 0.55 $ 0.55 $ 0.55
$ 6.80 $ 6.78 $ 6.78 $ 6.78
Total Net Income Adjusted for Dividend $ 31.00 $ 28.73 $ 28.64 $ 28.56
-------- -------- -------- --------
Undistributed NI: Class A 26.14 26.40 26.32 26.24
Undistributed NI: Class B 4.85 2.33 2.32 2.31
-------- -------- -------- --------
NIAC Class A Series 31.88 32.63 32.55 32.47
NIAC Class B Series 5.92 2.88 2.87 2.86
-------- -------- -------- --------
Class A Reported EPS (diluted) $ 0.63 $ 0.65 $ 0.65 $ 0.65
Class B Reported EPS (diluted) $ 0.58 $ 0.59 $ 0.59 $ 0.59
Class A Accretion(Dilution) 2.35% 2.10% 1.85%
Class B Accretion(Dilution) 2.35% 2.10% 1.85%
-------- -------- -------- --------
KEY RATIOS:
Return on Equity 14.8% 16.4% 16.4% 16.5%
Return on Assets 1.0% 0.9% 0.9% 0.9%
Tangible Common Equity/ Assets 4.6% 3.69% 3.66% 3.62%
TIER I Leverage Ratio 6.5% 5.43% 5.38% 5.33%
Double Leverage Ratio 177.8% 208.58% 209.97% 211.37%
Tangible Common Equity/Share $ 4.35 $ 3.97 $ 3.93 $ 3.89
<CAPTION>
$6.40 $6.60 $6.80
-------- -------- --------
<S> <C> <C> <C>
DIVIDENDS:
Class A Dividend Advantage 110% 110% 110%
Effective Class A Avg. Shares (dil) 55.315 55.315 55.315
Effective Class B Avg. Shares (dil) 4.876 4.876 4.876
-------- -------- --------
Net Income Allocation %: Class A 91.9% 91.9% 91.9%
Net Income Allocation %: Class B 8.1% 8.1% 8.1%
Dividend Payout Ratio 19% 19% 19%
Class A Dividend Per Share $ 0.12 $ 0.12 $ 0.12
Class B Dividend Per Share $ 0.11 $ 0.11 $ 0.11
-------- -------- --------
Dividend: Class A $ 6.23 $ 6.22 $ 6.22
Dividend: Class B $ 0.55 $ 0.55 $ 0.55
$ 6.77 $ 6.77 $ 6.77
Total Net Income Adjusted for Dividend $ 28.47 $ 28.39 $ 28.30
-------- -------- --------
Undistributed NI: Class A 26.17 26.09 26.01
Undistributed NI: Class B 2.31 2.30 2.29
-------- -------- --------
NIAC Class A Series 32.39 32.31 32.23
NIAC Class B Series 2.86 2.85 2.84
-------- -------- --------
Class A Reported EPS (diluted) $ 0.64 $ 0.64 $ 0.64
Class B Reported EPS (diluted) $ 0.59 $ 0.58 $ 0.58
Class A Accretion(Dilution) 1.60% 1.34% 1.09%
Class B Accretion(Dilution) 1.60% 1.34% 1.09%
-------- -------- --------
KEY RATIOS:
Return on Equity 16.6% 16.6% 16.7%
Return on Assets 0.9% 0.9% 0.9%
Tangible Common Equity/ Assets 3.58% 3.55% 3.51%
TIER I Leverage Ratio 5.28% 5.23% 5.18%
Double Leverage Ratio 212.80% 214.24% 215.70%
Tangible Common Equity/Share $ 3.86 $ 3.82 $ 3.78
</TABLE>
(a) 2000 Operating performance based on IBES mean estimate
40
<PAGE> 42
DISCOUNTED CASH FLOW ANALYSIS
<TABLE>
<CAPTION>
2000 (a) 2001 2002 2003 2004 Terminal Value
-------- ------ ------ ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
TERMINAL MULTIPLE................................................................................ 7.5x
Status Quo EPS $ 0.63 $ 0.69 $ 0.75 $ 0.82 $ 0.89 x 7.5 = $ 6.70
Proforma EPS 0.65 0.71 0.78 0.85 0.94 x 7.5 = 7.02
------ ------ ------ ------ ------ ------- ------
INCREMENTAL EPS $ 0.01 $ 0.02 $ 0.03 $ 0.04 $ 0.04 x 7.5 = $ 0.32
Status Quo - Dividends $ 0.11 $ 0.12 $ 0.14 $ 0.15 $ 0.16
Pro Forma - Dividends 0.12 0.14 0.15 0.16 0.18
------ ------ ------ ------ ------
Incremental Dividends $ 0.01 $ 0.01 $ 0.01 $ 0.01 $ 0.01
Incremental Terminal Value $ 0.32
------ ------ ------ ------ ------
INCREMENTAL CASH FLOW $ 0.01 $ 0.01 $ 0.01 $ 0.01 $ 0.33
</TABLE>
<TABLE>
<S> <C>
NPV AT 10% $ 0.24
NPV AT 11% $ 0.23
NPV AT 12% $ 0.22
NPV AT 13% $ 0.21
</TABLE>
41
