315858--3/17/2008--BFC_FINANCIAL

related topics

{loan, real, estate}

{operation, natural, condition}

{acquisition, growth, future}

{stock, price, share}

{tax, income, asset}

{regulation, change, law}

{stock, price, operating}

{investment, property, distribution}

{cost, contract, operation}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{control, financial, internal}

{competitive, industry, competition}

{gas, price, oil}

{loss, insurance, financial}

{financial, litigation, operation}

{personnel, key, retain}

{provision, law, control}

We have in the past incurred operating cash flow deficits that we expect will continue in the future. Conditions and events 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 than us. 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 control over financial reporting 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 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 A decline in the Florida real estate market has and may continue to adversely affect our earnings and financial condition. BankAtlantic s loan portfolio is concentrated in real estate lending which makes its loan portfolio more susceptible to credit losses in the current depressed real estate market. BankAtlantic s consumer loan portfolio is concentrated in home equity loans collateralized by Florida properties primarily located in the markets where we operate our store network. BankAtlantic s loan portfolio subjects it to high levels of credit risk. BankAtlantic s interest-only residential loans expose it to greater credit risks. Increase in the Allowance for Loan Losses will result in reduced earnings. Adverse events in Florida, where our business is currently concentrated, could adversely impact our results and future growth. Changes in interest rates could adversely affect our net interest income and profitability. BankAtlantic s Florida s Most Convenient Bank initiative and related infrastructure expansion to support a larger organization has resulted in higher operating expenses, which has had an adverse impact on our earnings. BankAtlantic s new stores may not achieve profitability. BankAtlantic obtains a significant portion of its non-interest income through service charges on core deposit accounts. BankAtlantic Bancorp services its debt and pays dividends primarily from dividends from BankAtlantic, which are subject to regulatory limits. We are controlled by BFC Financial Corporation and its control position may adversely affect the market price of our Class A common stock. 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. 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 There has been a decline in the homebuilding industry over the past two years and, if it continues, it could adversely affect land development activities at our Land Division. 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 Natural disasters could have an adverse effect on our real estate operations. 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 district and special assessment district bonds to fund development costs and we will be responsible for assessments until the underlying property is sold. RISKS ASSOCIATED WITH LEVITT AND SONS BANKRUPTCY FILING We cannot predict the effect that the Chapter 11 Cases will have on Levitt and Sons business and creditors or on Levitt Corporation Levitt and Sons bankruptcy and the publicity surrounding its filing may adversely affect Levitt Corporation and its subsidiaries other than Levitt and Sons. Levitt and Sons had surety bonds on most of their projects, some of which were subject to indemnity by Levitt Corporation. Levitt Corporation s outstanding advances due from Levitt and Sons may not be repaid. RISKS RELATING TO OUR COMPANY Our outstanding debt instruments impose restrictions on our operations and activities and could adversely affect our financial condition Our current land development plans may require additional capital, which may not be available on favorable terms, if at all. Margins in our Land Division are subject to significant volatility. When commercial leasing projects become available for sale, they may not yield anticipated returns, which could harm our operating results, reduce cash flow, or cause management to choose not to sell certain commercial assets. We are dependent upon certain key tenants and decisions made by these tenants or adverse developments in the business of these tenants could have a negative impact on our financial condition. It may be difficult and costly to rent vacant space and space which may become vacant in future periods. The loss of the services of our key management and personnel could adversely affect our business Our future acquisitions may reduce our earnings, require us to obtain additional financing and expose us to additional risks. 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--3/17/2008--BFC_FINANCIAL_CORP