Feds order BankAtlantic to strengthen finances
By Palm Beach Business.com
FORT LAUDERDALE — The federal Office of Thrift Supervision has ordered BankAtlantic to take steps to strengthen its financial condition and operations, the bank announced Thursday.
Under the order, BankAtlantic is required to increase capital, reduce certain assets, update its business plan, and limit brokered deposits and asset growth. BankAtlantic also will be restricted from making new commercial real estate loans.
“In light of the economic climate, more than 70 banks in Florida and hundreds nationally have been asked by regulators to sign supervisory and enforcement agreements,” BankAtlantic chairman and CEO Alan B. Levan said. “We have been working closely with our regulators since the start of this economic recession to increase capital, reduce higher risk and non performing loans, return to profitability and continue safe and sound banking practices. These agreements formalize steps that we believe are already underway and many have already been fully implemented.”
Levan said pre-tax earnings from BankAtlantic’s core operations have been steady through the recession, but losses from real estate loans dropped the bank into the red. That’s not surprising considering the decline in real estate value in Florida, particularly South Florida.
“Most of the action steps enumerated in the agreement have been commenced or completed at this time,” Levan said. “We put many of these controls in place as far back as 2007. Furthermore, we don't rely on brokered deposits or have plans to increase our asset size. We see no meaningful impediment to our expected operations and anticipate core earnings will continue to remain steady.”
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