Two weeks after announcing a $55 million rights offering, BankAtlantic Bancorp Inc. pulled the plug on the plan Tuesday.
Instead, the Fort Lauderdale, Fla., thrift company said it would go ahead with a one-for-five reverse stock split, which it also had said was under consideration.
The $6.5 billion-asset company did not provide any explanation for its about-face Tuesday. However, it said it would re-evaluate the possibility of a stock offering after the reverse split is completed some time this quarter.
Alan B. Levan, its chairman and chief executive officer, said in a press release that the company remains well capitalized, and "will make a decision as to whether to proceed with an offering after again reviewing our capital forecasts and market conditions."
He did not return calls seeking comment Tuesday.
Mr. Levan had previously said he planned a rights offering because "the best time to raise capital is when you don't need it, when you trend lines are improving."
BankAtlantic lost $19.4 million during the second quarter, when nonperforming assets increased 117%, to $100 million, from a year earlier.
