BankAtlantic reveals extent of troubled mortgages in wake of BB&T buy
[Update 1: Clarifies loan losses provisions] BankAtlantic recently made a deal with another bank to offload its deposits, but not the delinquent mortgages being held on its books. A recent financial filing from BankAtlantic reveals the extent to which these loans are trouble. BankAtlantic holds roughly $16.6 million of delinquent residential real estate loans as of Sept. 30, according to a supplement filed after the company's third-quarter earnings report released Wednesday. In contrast, only $973,000 in delinquent loans are in commercial real estate. BankAtlantic currently holds $20.8 million in loan provisions. By way of comparison, commercial real estate loan provisions is $67.6 million. An investor relations manager states that BankAtlantic is well-cushioned against loan losses. The Florida bank announced a deal with BB&T Corp. (BBT) Tuesday that transfers its retail business to BB&T, but not its nonperforming loans and real estate owned properties. Those assets will stay with BankAtlantic's parent company, BankAtlantic Bancorp (BBX), which will soon change its name to reflect its new role. BankAtlantic Bancorp reported a third-quarter loss of $11.8 million, or 74 cents a share share, narrowing its $25.2 million loss from the same quarter a year ago. The banking subsidiary reported a loss of $8.1 million loss for the quarter, narrowed from $17.7 million a year earlier. All delinquent loans totaled about $33 million for the banking division, with about half from residential properties. BankAtlantic Bancorp charged about $17.6 million in loan loss provision for the third quarter. Executives at the bank holding company were found guilty in November 2010 for failing to disclose information about a real estate portfolio to investors. A BankAtlantic spokesperson told HousingWire on Thursday the lawsuit was later dismissed in Federal court and the executives exonerated. The properties consisted of large swaths of rural properties, and the company was ordered to give $2.41 per share to each shareholder who purchased BankAtlantic common stock between April 26 and Oct. 26, 2007. Write to Andrew Scoggin. Follow him on Twitter @ascoggin.