BankAtlantic Notices Losses from Florida Mortgage Market

Today BankAtlantic’s shares fell 13 percent adding to Friday’s 38 percent sell off. The stock is currently trading down 70 percent since the start of the year due to the problems in the Florida mortgage market.

BankAtlantic showed 30 million dollars in third quarter losses which had much to do with more specifically the large amount of commercial borrowers missing their October 1st payments in Florida. 156 million dollars worth of loans had missed this payment as reported by their third quarter earnings report. Alan Levan, BankAtlantic’s CEO, stated that most of the troubled commercial loans were contracts in place with large national builders. As Florida residential housing development collapsed, many builders walked away from the deals. In downplaying the damage Levan stated that most of the troubled loans have outstanding balances of less than 20 million dollars, and pointed out that some of the October 1st payments have been made.

The Florida based bank also grew rapidly and is currently holding $2.3 billion in residential loans so it also has significant mortgage exposure. BankAtlantic is still very well capitalized, however further asset quality weakness, loan charge-offs and net losses could start to use up its capital position over the next few quarters.

To read more about the stormy seas for BankAtlantic head on over to TheStreet.com