BankAtlantic's Rise and Fall

BankAtlantic's Rise and Fall was a tale of rapid expansion and eventual collapse. The bank was founded in 1950 by Jack Gordon, who had a vision for a community-focused bank that would cater to the needs of South Florida's growing population.

BankAtlantic's early success was fueled by its innovative approach to banking, which included offering low-interest loans and high-yield savings accounts. The bank's customer-friendly policies helped it to attract a loyal customer base and establish a strong reputation in the community.

As the bank grew, it expanded its operations to new locations throughout South Florida, eventually becoming one of the largest banks in the region. However, this rapid expansion also brought new challenges, including increased competition and regulatory scrutiny.

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BankAtlantic was founded in 1952 as Atlantic Federal Savings and Loan Association of Fort Lauderdale. It was renamed BankAtlantic in 1988.

The bank has undergone significant changes over the years. In 2001, BankAtlantic Bancorp acquired Community Savings Bankshares, Inc. This marked a significant expansion for the bank, which was already growing rapidly. BankAtlantic opened its 100th location in 2007, a testament to its expanding reach.

Here are some key milestones in BankAtlantic's history:

BankAtlantic was founded in 1955 by Jack Gordon, an entrepreneur who had a vision for a community bank that would serve the needs of local residents and businesses.

The bank's early years were marked by a focus on providing personalized service and building relationships with customers.

It started with a single branch in Fort Lauderdale and grew slowly but steadily over the years.

BankAtlantic's commitment to the community was evident from the start, with Gordon donating to local charities and participating in civic events.

The bank's early success can be attributed to Gordon's leadership and his team's dedication to providing excellent customer service.

BankAtlantic's reputation as a community bank continued to grow throughout the 1960s and 1970s.

Gordon's leadership also led to the bank's expansion into new markets, including the opening of new branches in surrounding communities.

BankAtlantic's history is filled with notable events that shaped the bank's growth and success.

In 2009, BankAtlantic was acquired by BB&T, marking a significant milestone in the bank's history.

The bank's founder, Alan Levan, played a crucial role in its success, serving as CEO and Chairman of the Board.

BankAtlantic's commitment to community development is evident in its establishment of the BankAtlantic Foundation in 1995.

The foundation focused on supporting local non-profit organizations and initiatives that promoted economic growth and education.

The BankAtlantic Acquisition was a significant event in the company's history. In 2012, a sale of BankAtlantic's equity to BB&T Corporation was attempted, but it was ultimately blocked by the Delaware Court of Chancery.

The court permanently enjoined the sale after a 3-day trial, citing several reasons. The sale would have breached the successor obligor provision and constituted an event of default. This would have allowed the trustees to accelerate payment of debt securities in the amount of $290 million that BankAtlantic could not pay.

BB&T was not assuming those liabilities, which added to the concerns. The deal also provided for unjustified personal payments to key insiders, reducing the total purchase price. This was seen as a violation of the absolute priority rule.

The court was not convinced by BankAtlantic's claims that an injunction would lead to its failure as an entity. The status quo, without a sale, was deemed tenable. Evidence presented at trial supported this conclusion.

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The Delaware Court of Chancery permanently enjoined BankAtlantic's sale to BB&T Corporation in 2012. This decision was a result of a 3-day trial.

The Court found that the plaintiffs who objected to the sale had a strong case, with a high likelihood of success on the merits. The sale would breach the successor obligor provision and constitute an event of default.

The sale would also trigger an event of default, allowing the trustees to accelerate payment of debt securities worth $290 million. The buyer, BB&T, was not assuming those liabilities.

The terms of the deal also provided for unjustified personal payments to key insiders, reducing the total purchase price. This would violate the absolute priority rule.

The Court was not convinced by BankAtlantic's claims that an injunction would lead to the company's failure. The Court cited evidence from the trial to support its decision.

In the end, the balance of hardships favored the grant of injunctive relief. The Court's decision was a significant blow to BankAtlantic's plans to sell to BB&T.

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