A familiar story
Low interest rates continue to curb banks' ability to show any substantial revenue growth. BankAtlantic's net interest income fell 26%. However, the 22% rise in noninterest income somewhat cushioned the fall, resulting in a 7% decline in total revenue.
Credit quality improved from a year ago, but sequentially, it fell. Loan-loss provisions went down 27% compared with the same period last year, but sequentially allowance for loan losses rose 67% because of a 19% hike in the number of bad loans. BankAtlantic also met with a $7.5 million net charge-off on a joint venture that fell through.
The company did manage to trim its losses by more than half to $11.5 million as compared to a loss of $25.4 million last year. Last quarter, BankAtlantic managed to record a profit of $23.1 million, of course, helped by a $38.7 million gain from the sale of 19 of its Tampa branches and their corresponding deposits to PNC Financial Services
BB&T to the rescue
The company recently signed a definitive agreement to sell BankAtlantic, its wholly owned subsidiary, to BB&T
Economic conditions still remain the biggest challenge for BankAtlantic at present, though CEO Alan Levan sounded a cheery note that he believes an economic rebound is imminent. The major worry for BankAtlantic is the fall in its credit quality, but the good thing is that it has been able to offload its troubles onto BB&T. Levan believes the worst of the loan losses is behind them and that the "signs of an economic rebound" help their cause. Do you as well? Leave your thoughts below and also stay up to date on all the top news and analysis on BankAtlantic -- click here to add the stock to your own personalized watchlist.