How to Wow 'Em

How to Wow 'Em

BANKING by Janet Leiser | Senior Editor

BankAtlantic CEO Jarett S. Levan was in the Tampa Bay area recently to meet employees and personally thank them for their service.

Many of BankAtlantic's 300 employees in Hillsborough, Pinellas and Pasco counties showed up at the Florida Aquarium for the annual employee appreciation event, called Red Carpet Night.

Levan, who succeeded his father, Alan Levan, as CEO in January, hopes that his one-on-one interaction with employees will help foster the type of relationship the bank wants employees to have with customers.

"We have a culture that we call the 'wow experience,'" Levan says. "It's a culture of wowing our associates and wowing our customers."

The adage 'treat others as you'd like to be treated' applies at Fort Lauderdale-based BankAtlantic, a federal savings bank, which has grown deposits by about $1.5 billion, to $2.2 billion, since 2001. With about $6 billion in assets, it's the second largest Florida-based bank behind Coral Gables-based BankUnited, with $13.8 billion in assets.

"We treat customers with respect," Levan says. "We are professional, but we have fun. We know customers by name. We know their kids' names. If it's raining we walk them to the car with an umbrella. We treat them like friends, family. It's a culture that has really worked for us."

Hiring the right employees in Florida's tight job market is one of the bank's biggest challenges, Levan says, adding, "We're not just looking for warm bodies. We're not looking for bankers. We can teach banking. We're looking for employees with the right attitude, with a passion for customer service. That's not easy to find. When we find it, we do whatever we can to hold on to those people."

To further create the 'wow experience' for customers, the bank gives free gifts to new customers, and it gives gifts to customers who wear red on Fridays. It has given out two million gifts, including chocolate cigars on Father's Day and carnations on Mother's Day, in the past six years.

Levan, who joined BankAtlantic full-time in 1998, introduced "Florida's Most Convenient Bank" initiative, in 2002. Branches are open 80 hours weekly, from 7:30 a.m. to 8 p.m. Monday through Saturday and from 11 a.m. to 4 p.m. on Sunday.

"If you think like your traditional banker, it could be difficult," Levan says. "But at BankAtlantic we think like a retailer. In fact, we call ourselves a banking retailer. A lot of our new hires are coming from retail and they're used to working longer hours."

Tony D. Parker, the bank's Tampa Bay area president, says BankAtlantic offers more flexible work schedules than its competitors, which also helps in recruiting employees, including college students.

BankAtlantic has 93 locations, which it calls stores, throughout Florida, with 14 in the Tampa Bay area. It plans to open another six Tampa Bay branches this year and another five to six in 2008.

Parker, who was previously with Barnett Bank, Florida's largest state bank until its 1997 acquisition by NationsBank, has overseen BankAtlantic's Tampa Bay growth, from the 1998 opening of the bank's first local branch in the Countryside area of north Pinellas.

"Like everyone else, it's about having the right location in the right market," Parker says.

BankAtlantic instituted an organic growth strategy two years ago, Levan says. Prior to 2005, expansion was slow.

It costs between $3 million and $5 million to open a new location, depending on the cost of the real estate, he says. (BankAtlantic owns about half its locations.)

Levan cited the cost of growth, along with a large real estate loan gone bad, and a large marketing budget as reasons why BankAtlantic's income dropped to $26.9 million in 2006 from $42.5 million in 2005.

This year, BankAtlantic has cut its marketing budget by about $10 million to $25 million, Levan says, adding: "It'll be a tough year for us but I think we have all cylinders working in the right direction."

A new branch usually becomes profitable about 12 to 15 months after it opens, Levan says.

That's good news for BankAtlantic, which opened 17 locations in 2006 that are expected to start generating profit this year. Although there will the added cost of 24 new branches this year.

It's possible the bank will have another 100 locations, or twice as many as it currently has, in another four to five years if it continues to grow by 20% annually, the CEO says.

While the growth is costly, Levan says the bank's majority owner, BFC Financial Corp., is supportive.

"Our corporate structure allows us to build a franchise without worrying about quarter-to-quarter earnings," Levan says. "While we're a public company, we have a controlling shareholder, and BFC Financial Corp. is in the business of growing companies for the long-term."

BankAtlantic, which Levan calls a "super community bank," has plenty of room for growth. The bank has about 1% market share in Florida.

In addition to the Tampa Bay area, the bank is increasing its presence in Orlando, where it plans to open four new locations in 2007.

Levan says the bank isn't for sale and it isn't looking for a suitor. "We'd very much like to be the last Florida bank in the state of Florida," he says.

AT A GLANCE

BankAtlantic-Financed Projects on the Gulf Coast

• The Ritz Carlton Hotel/Condominiums, Sarasota

• The Concession, a golf course community, Manatee County

• The Waterfront Bimini Bay, residential community, Ruskin

• Laguna Riviera Condominiums, Bradenton

• Publix-anchored Collier Commons, shopping center, Pasco County

• Publix-anchored Cross Creek Village, shopping center, Hillsborough County

• Nautico, marina-themed mixed use development, Pinellas County

• Carriage Pointe, residential community, Hillsborough County

• Hernando Oaks, golf course community, Hernando County

• The Crystal Beach Shopping Center, Pinellas County