BankAtlantic Bancorp must raise more capital, limit the growth of its brokered deposits and make other improvements under an agreement with the Office of Thrift Supervision.
The Fort Lauderdale, Fla., company said late Thursday that the OTS had issued a cease-and-desist order requiring it and its BankAtlantic unit to strengthen operations. "These agreements formalize steps that we believe are already underway, and many have already been fully implemented," Alan Levan, BankAtlantic Bancorp's chairman and chief executive, said in a press release.
The order gives the thrift 60 days to submit an acceptable plan to boost its leverage ratio to 8% and its total risk-based capital ratio to 14% by June 30. At Dec. 31 the thrift's leverage ratio was 6.22% and its total risk-based capital ratio was 11.9%.
The $4.46 billion-asset BankAtlantic also said the OTS is barring it from making new commercial real estate loans, requiring it to reduce classified assets and demanding an update of its business plans.
BankAtlantic had warned this month that it might be required to boost capital after posting a fourth-quarter loss of $48.1 million, its 14th straight losing quarter.