921768--3/19/2010--BANKATLANTIC_BANCORP

related topics

{loan, real, estate}

{tax, income, asset}

{condition, economic, financial}

{stock, price, share}

{financial, litigation, operation}

{loss, insurance, financial}

{regulation, change, law}

{stock, price, operating}

Continued capital and credit market volatility may adversely affect our ability to access capital and may have a material adverse effect on our business, financial condition and results of operations. BankAtlantic Bancorp has deferred interest on its outstanding junior subordinated debentures and anticipates that it will continue to defer this interest for the foreseeable future, which could adversely affect its financial condition and liquidity. BankAtlantic Bancorp s cash offers to purchase $230 million of trust preferred securities issued by statutory business trusts formed by Historically, BankAtlantic Bancorp has relied on dividends from BankAtlantic to service its debt and pay dividends, but no dividends from BankAtlantic are anticipated or contemplated for the foreseeable future. The decline in the Florida real estate market has adversely affected, and may continue to adversely affect, our earnings and financial condition. Our loan portfolio is concentrated in loans secured by real estate, a majority of which are located in Florida, which makes us very susceptible to credit losses given the current depressed real estate market. BankAtlantic s consumer loan portfolio is concentrated in home equity loans collateralized by Florida properties primarily located in the markets where BankAtlantic operates its store network. An increase in BankAtlantic s allowance for loan losses will result in reduced earnings. Adverse events in Florida, where our business is currently concentrated, could adversely impact our results and future growth. BankAtlantic s interest-only residential loans expose it to greater credit risks. Nonperforming assets take significant time to resolve and adversely affect our results of operations and financial condition, and could result in further losses in the future. Changes in interest rates could adversely affect our net interest income and profitability. BankAtlantic obtains a significant portion of its non-interest income through service charges on core deposit accounts, and recent legislation designed to limit service charges could reduce our fee income. The cost and outcome of pending legal proceedings may impact our results of operations BankAtlantic has significantly reduced operating expenses over the past three years and BankAtlantic may not be able to continue to reduce expenses without adversely impacting its operations. Deposit insurance premium assessments may increase substantially, which would adversely affect expenses. Further reductions in BankAtlantic s assets may adversely affect our earnings and/or operations. Adverse market conditions have affected and may continue to affect the financial services industry as well as our business and results of operations. Legislative and regulatory actions taken now or in the future may have a significant adverse effect on our financial statements. The Company and BankAtlantic are each subject to significant regulation and the Company s activities and the activities of the Company s subsidiaries, including BankAtlantic, are subject to regulatory requirements that could have a material adverse effect on the Company s business. BankAtlantic is subject to liquidity risk as its loans are funded by its deposits. Our loan portfolio subjects us to high levels of credit and counterparty risk. The Company is controlled by BFC Financial Corporation and its controlling shareholders and this control position may adversely affect the market price of the Company s Class A common stock. BFC can reduce its economic interest in us and still maintain voting control.

Full 10-K form ▸

921768--3/19/2010--BANKATLANTIC_BANCORP_INC