July 31 Regional lender BB&T Corp said it will complete its acquisition of BankAtlantic Bancorp's banking subsidiary on Tuesday after federal regulators approved a deal that expands its presence in Southeast Florida.
Winston-Salem, North Carolina-based BB&T agreed in November to buy BankAtlantic's primary subsidiary, but had to sweeten the offer in March after it faced resistance from investors, who feared the purchase favored the management over debtholders.
Under the agreement, BB&T acquires $3.3 billion in deposits and $2.1 billion in loans for an estimated premium of $301 million above the net asset value of BankAtlantic at closing. It also agreed to assume the holding company's obligations on $285 million in trust preferred securities.
In February 2011, BankAtlantic and its holding company were ordered by regulators to boost capital after losses ballooned on bad real estate loans made during the housing bubble. BankAtlantic hasn't posted a profit since 2006.
BB&T won approval for the deal from the Federal Reserve Board and the Federal Deposit Insurance Corp. It already had permission from the North Carolina state banking commissioner.
BankAtlantic's signs will be changed in the fourth quarter, BB&T said. It will now have the sixth-largest share of deposits in the Miami market.
BankAtlantic shares were up 2.2 percent to $6.09 in early afternoon trading, while BB&T shares fell 1 percent to $31.39.