BB&T Corp. agreed to acquire struggling Florida lender BankAtlantic, part of BankAtlantic Bancorp Inc., in a deal that will expand its presence in SouthEast Florida.
BankAtlantic shares more than doubled to $4.95 in recent premarket trading. Through Monday's close the stock is down 59% this year.
BB&T said it will acquire about $2.1 billion in loans and take over about $3.3 billion in deposits for an estimated premium of $301 million above the net asset value of BankAtlantic.
The deal excludes the unit's nonperforming and other criticized assets as of Sept. 30. None of BankAtlantic Bancorp's obligations are being assumed. Further financial terms weren't disclosed.
BankAtlantic has 78 branches between Port St. Lucie, Fla. and Miami. The company has posted losses for four years amid falling commercial real estate valuations and a weak economy in the state.
BB&T, which has been acquisitive recently, expects the deal to add to its earnings next year. The deal increases BB&T's rank by market share in the Miami area to No. 6 from No. 14.
Like its peers, BB&T has posted stronger results in recent quarters as credit conditions improve and lower reserves are needed for troubled loans. The lender has angled for commercial and industrial customers while reducing its exposure to higher-risk commercial real estate loans.
