315858--3/16/2007--BFC_FINANCIAL

related topics

{loan, real, estate}

{regulation, change, law}

{stock, price, share}

{acquisition, growth, future}

{competitive, industry, competition}

{tax, income, asset}

{stock, price, operating}

{cost, contract, operation}

{control, financial, internal}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{loss, insurance, financial}

{condition, economic, financial}

{financial, litigation, operation}

{personnel, key, retain}

{cost, operation, labor}

{provision, law, control}

{gas, price, oil}

We have in the past incurred operating cash flow deficits that we expect will continue in the future. Events in Florida, where our investments are currently concentrated, could adversely impact our results and future growth. Our future acquisitions may reduce our earnings, require us to obtain additional financing and expose us to additional risks. Our activities and our subsidiaries activities are subject to a wide range of bank regulatory requirements that could have a material adverse effect on our business. We have many competitors who may have greater financial resources or operate under fewer regulatory constraints. Our success depends on key management, the loss of which could disrupt our business operations. Certain members of our Board of Directors and certain of our executive officers are also directors and executive officers of our affiliates. Recent changes in accounting standards regarding the treatment of stock options could harm our ability to attract and retain employees and negatively impacts our results of operations. Failure to achieve and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and stock price. Risks Associated with Our Investment in Benihana, Inc. and the Restaurant Industry Issuance of Additional Securities In The Future. Our portfolio of equity securities subjects us to equity pricing risks Our control position may adversely affect the market price of BankAtlantic Bancorp s and Levitt s Class A Common Stock. Alan B. Levan And John E. Abdo s Control Position May Adversely Affect The Market Price Of Our Common Stock. The terms of our articles of incorporation, which establish fixed relative voting percentages between our Class A Common Stock and Class B Common Stock, may not be well accepted by the market. Financial Services Segment Risk Factors Changes in interest rates could adversely affect our net interest income and profitability. BankAtlantic s Florida s Most Convenient Bank initiative has resulted in higher operating expenses, which has had an adverse impact on our earnings. BankAtlantic s loan portfolio is concentrated in real estate lending. BankAtlantic obtains a significant portion of its non-interest income through service charges on core deposit accounts. BankAtlantic s loan portfolio subjects it to high levels of credit risk. BankAtlantic s interest-only residential loans exposes it to greater credit risks. An inadequate allowance for loan losses would result in reduced earnings. Adverse events in Florida, where our business is currently concentrated, could adversely impact our results and future growth. BankAtlantic has entered into a deferred prosecution agreement with the Department of Justice and a Cease and Desist Order with the OTS regarding its compliance with the USA PATRIOT Act, anti-money laundering laws and the Bank Secrecy Act. We are controlled by BFC Financial Corporation and its control position may adversely affect the market price of our Class A common stock. BankAtlantic Bancorp s ability to service its debt and pay dividends depends on dividends from BankAtlantic, which are subject to regulatory limits. Our activities and our subsidiary s activities are subject to regulatory requirements that could have a material adverse effect on our business. Our portfolio of equity securities subjects us to equity pricing risks. Homebuilding Real Estate Development Segment Risk Factors RISKS RELATING TO OUR BUSINESS AND THE REAL ESTATE BUSINESS GENERALLY We engage in real estate activities which are speculative and involve a high degree of risk We have experienced a decline in our homebuilding operations over the past year which has adversely affected our sales volume and pricing. Our industry is highly competitive Continued decline in land values could result in further impairment write-offs. Because real estate investments are illiquid, a decline in the real estate market or in the economy in general could adversely impact our business and our cash flow. Shortages of supplies and labor could increase costs and delay deliveries, which may adversely affect our operating results Natural disasters could have an adverse effect on our real estate operations Our ability to sell lots and homes, and, accordingly, our operating results, will be affected by the availability of financing to potential purchasers Our ability to successfully develop communities could affect our financial condition A portion of our revenues from land sales in our master planned communities are recognized for accounting purposes under the percentage of completion method, therefore if our actual results differ from our assumptions our profitability may be reduced. Product liability litigation and claims that arise in the ordinary course of business may be costly which could adversely affect our business We are subject to governmental regulations that may limit our operations, increase our expenses or subject us to liability Building moratoriums and changes in governmental regulations may subject us to delays or increased costs of construction or prohibit development of our properties We are subject to environmental laws and the cost of compliance could adversely affect our business Increased insurance risk could negatively affect our business We utilize community development districts to fund development costs RISKS RELATING TO OUR COMPANY Our indebtedness and leverage could adversely affect our financial condition, restrict our ability to operate and prevent us from fulfilling our obligations Our current land development plans may require additional capital, which may not be available We may not successfully integrate acquired businesses into ours Our controlling shareholders have the voting power to control the outcome of any shareholder vote, except in limited circumstances RISKS ASSOCIATED WITH OUR OWNERSHIP STAKE IN BLUEGREEN CORPORATION

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315858--3/16/2007--BFC_FINANCIAL_CORP