BB&T takes BankAtlantic deposits and leaves the real estate
BB&T (BBT) said Tuesday it would acquire BankAtlantic's retail business, including $2.1 billion in loans and $3.3 billion in deposits. The deal does not include BankAtlantic's "nonperforming and other criticized assets," BB&T Chairman and CEO Kelly King said in a release. Those assets, which include non-performing loans and real estate owned properties, will be transferred to BankAtlantic's holding company, BankAtlantic Bancorp (BBX). BankAtlantic Bancorp "will no longer be a savings and loan holding company" and will change its name after the close of the deal, Chairman and CEO Alan Levan said in a release. The company will shift focus to specialty finance and commercial lending, as well as its retained assets. BFC Financial Corporation, the largest holder of BankAtlantic Bancorp stock, is in favor of this transaction. Executives at BankAtlantic Bancorp, which controls BankAtlantic, were found guilty in November 2010 for failing to disclose information about a real estate portfolio to investors. The properties consisted of large swaths of rural properties. "The problem was the loans got risky and internal record showed that," plaintiff attorney Mark Arisohn told HousingWire at the time. "The company told investors the portfolio was performing extremely well when hundreds of thousands of dollars of loans in this portfolio were on their loan watch list." The Fort Lauderdale, Fla., company was ordered to give $2.41 per share to each shareholder who purchased BankAtlantic common stock between April 26 and Oct. 26, 2007. In Tuesday's deal, BB&T will pay an estimated premium of $301 million above the net asset value of BankAtlantic, representing a 9% deposit premium. The premium will not exceed $316 million. The acquisition adds 78 branches in Southeast Florida to BB&T's network. The Winston-Salem, N.C., company holds $168 billion in assets and market capitalization of $14.9 billion, and operates about 1,800 financial centers. Financial advisers for BankAtlantic are Sandler O’Neill & Partners and Cantor Fitzgerald. Deutsche Bank Securities advised BB&T. Write to Andrew Scoggin. Follow him on Twitter @ascoggin.