BankAtlantic Bancorp Inc. of Fort Lauderdale, Fla., said Monday that it would use the proceeds from its sale of Stifel Financial Corp. stock to establish a subsidiary that would house and acquire the parent's nonaccruing loans.
The $6.4 billion-asset BankAtlantic said it will transfer about $100 million of its nonaccruing loans to the subsidiary this week in exchange for the same amount of cash.
At yearend BankAtlantic had $178.6 million of nonaccruing loans, including $159.3 million of commercial real estate ones.
Last week BankAtlantic sold about 1.9 million of its Stifel common shares for $40 each, raising about $71.5 million after expenses.
The company said it remains well capitalized and would remain so after the asset transfer. It also said the nonaccruing assets will continue to be reflected in its consolidated financial statements.
BankAtlantic shares rose 8.9% on Monday, to close at $4.52.
