BankAtlantic Bancorp revealed on Monday that net losses had driven its equity below zero.
The Fort Lauderdale, Fla., company, which holds $4.2 billion in assets, reported an $8.7 million equity deficit as of the end of the first quarter. The company did not mention its negative position in its
A money-losing quarter was nothing new for BankAtlantic — the $23 million it lost in the first quarter is the smallest loss it's taken in a year. In the press release, Chairman and CEO Alan Levan pointed to other improvements.
"Over the last several months, it appears that the decline in commercial real estate valuations in Florida has begun to stabilize and, in some areas, real estate valuations have actually improved," he said.
BankAtlantic is operating under a cease-and-desist order from the Office of Thrift Supervision requiring it to raise its Tier 1 capital ratio above 8% by the end of the second quarter. In the press release, Levan noted that hundreds of banks are operating under similar constraints.
Easing the company's position somewhat, it can defer payment for another 11 quarters on its $230 million of trust-preferred securities outstanding.
