Magazine article American Banker

2Q Earnings: Loss at BankAtlantic; Rights Offering Set

Magazine article American Banker

2Q Earnings: Loss at BankAtlantic; Rights Offering Set

Article excerpt

Byline: David Breitkopf

Shares of BankAtlantic Bancorp Inc. fell sharply Wednesday after the Fort Lauderdale, Fla., company reported a larger-than-expected second-quarter loss and said it intends to raise $55 million in a rights offering.

With losses on loans to developers continuing to mount, the $6.5 billion-asset company announced late Tuesday that it lost $19.4 million, or 35 cents a share - 15 cents worse than the estimate of analysts polled by Thomson Reuters. For last year's second quarter BankAtlantic posted net income of $11.7 million, or 20 cents a share in last year's second quarter.

BankAtlantic's shares, which have lost much of their value in the last year, were down 17.6% in heavy trading late Wednesday, to $1.36

The company said that nonperforming assets rose 117% year over year, to $100 million, and that nonperformers now make up 2.05% of total loans, versus 0.945% a year earlier.

Its loss provision was $37.8 million, 669% more than a year earlier but a 12% decrease compared with the first quarter.

During a conference call Wednesday, BankAtlantic's chairman and chief executive, Alan B. Levan, said that despite the loss, he was "pleased" and "bordering on excited" about the company's performance.

Since the end of the first quarter, he said, "Our chargeoffs are down, our net interest income is up, our core deposits are up, and noninterest expenses are down."

Though BankAtlantic's chargeoffs were up more than 1,000% from a year earlier, they were down 51% compared with the first quarter. …

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