BankAtlantic Expands its Customer Base; Grows its Florida Home Loan Business
Increasing its advertising by millions, BankAtlantic is expanding its marketing of Florida home loans, other loans and credit and debit cards, reports the South Florida Business Journal. The Broward County-based company could see its beaten-down profits and stock price could rise as a result, analysts say.
BankAtlantic is increasing its marketing of loans and cards because it has grown to more than 500,000 core customers, Chairman and CEO Alan Levan said. Every one has at least one checking and/or savings account with the company. The half-million figure is twice what the company boasted in 2003, when it was in the early stages of mail, radio and billboard ads.
“We now have a size that makes sense for us to do more marketing of additional products that fit the profile of our customers. The larger and more efficient you are, the more cross-selling you can do. That is the way you justify the costs of adding more retail customers,” Levan said.
BankAtlantic is preparing to significantly increase promotions that will include Florida home loans and commercial real estate loans, home equity loans, small business loans, credit cards and debit cards.
At the end of last year, BankAtlantic had $2.3 billion in first mortgages, $402 million in home equity loans and $226 million in small business loans on its books. It also provides credit cards issued by other banks, and periodically runs ads offering a $77 gift card to consumers who open an account with $500 or more, with direct deposit, and keeps at least that much money in it for 77 days.
A pair of analysts, Albert Savastano of Janney Montgomery Scott, and Jefferson Harralson of Keefe, Bruyette & Woods, are not surprised by the company reaching its 500,000-customer benchmark, based on periodic data BankAtlantic releases. BankAtlantic ended 2005 with $6 billion in assets and $3.8 billion in deposits.
The bank has 80 branches, all in Florida, with 63 in South Florida.
The company hopes that its mortgage and Florida home equity loan business can help it stabilize and build a foundation for continued growth. With mortgage rates still historically low, but up significantly from a year ago, it remains to be seen if demand for BankAtlantic services will be as high as the company hopes.
