Under the terms of the modified agreement, BB&T will assume BankAtlantic Bancorp’s obligations with respect to its $285m of outstanding trust preferred securities and accrued interest on the securities will be paid by BankAtlantic Bancorp.

Further terms of the agreement include $424m of loans and $17m of real estate owned and other assets, net based on BankAtlantic’s book value gross of any reserves as of 31 January 2012, previously held by BankAtlantic will be given to the formation of a new LLC.

BB&T will hold a 95% preferred interest in the LLC and BankAtlantic Bancorp will hold a 5% preferred interest and the remainder interest in the LLC is in addition to $175m in commercial real estate nonaccrual loans and real estate owned, as of 31 January 2012.

The assets held by the LLC are expected to be monetized over time and BB&T’s interest in the LLC will terminate and BankAtlantic Bancorp will be entitled to any and all residual proceeds in excess of $285m in preference amount.

BankAtlantic Bancorp will provide BB&T with an incremental $35m guarantee to assure BB&T’s recovery within seven years of the preference amount.

The core provisions of the original agreement remain unchanged with BB&T acquiring $2.1bn in loans and $3.3bn in deposits based on 30 September 2011 balances.

An estimated premium of $301m, which equates to 9% of total deposits at 30 September 2011, will be paid by BB&T to the closing net asset value of BankAtlantic and is subject to adjustment based on actual non-CD deposit balances at closing, but will not exceed $315.9m.

BankAtlantic Bancorp’s chairman and chief executive officer Alan Levan said the modified agreement clears the way for the transaction to continue.

"We currently anticipate that closing will occur in the second quarter of 2012, subject to the timely receipt of required regulatory approvals and satisfaction of other closing conditions. Pending closing, BankAtlantic will continue to operate in its normal course under the control of BankAtlantic Bancorp," Levan added.

Financial advice to BankAtlantic Bancorp in this transaction was provided by Sandler O’Neill + Partners, LP and Cantor Fitzgerald & Co.