BankAtlantic Bancorp Inc. shares soared Friday after majority shareholder BFC Financial Corp. reported increasing its stake in the Florida bank through the purchase of 2 million Class A shares.
BankAtlantic shares jumped 36 cents, or 24 percent, to $1.86. Shares have traded between 81 cents and $9.60 in the past 12 months.
BFC Financial now owns about 10.3 million Class A shares, or a 20.1 percent stake in BankAtlantic. Including 4.9 million Class B shares, which are convertible to Class A shares at any time, BFC Financial may be deemed to own a 27 percent stake in the company, according to a filing with the Securities and Exchange Commission.
"While conditions in the financial sector have been challenging, we believe BankAtlantic Bancorp's stock price has been unfairly depressed largely due to misinformation provided to the market," said BFC Financial Chairman and Chief Executive Alan B. Levan in a statement. "BankAtlantic remains 'well capitalized' under all regulatory guidelines. Unfortunately, it has been wrongly associated with other institutions that are not. We believe BankAtlantic Bancorp presents a remarkable buying opportunity for BFC."
Levan is also chairman and CEO of BankAtlantic Bancorp.
BankAtlantic filed a lawsuit in July against well-known banking analyst Richard Bove and his firm, charging both with defamation and negligence for mentioning the company in a list of banks that might fail, following the failure of IndyMac Bancorp.
Late last month, BankAtlantic announced a $55 million rights offering to raise capital, the same day it reported a net loss of $19.4 million, or 35 cents per share, for the second quarter. The quarterly shortfall, stemming from escalating loan defaults, was smaller than the bank's $23.4 million first-quarter loss, but it was still down from a profit of $11.6 million in the prior-year quarter.
The bank operates in Eastern Florida, an area hit particularly hard by the housing market downturn.
BFC Financial shares gained 20 cents, or 38.5 percent, to 72 cents. Shares have traded between 45 cents and $3.47 in the past 12 months.
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