Atlantic Coast Federal Corporation (NASDAQ:ACFC), the holding company for Atlantic Coast Bank, today reported financial results for the three and nine months ended September 30, 2010. Highlights of the Company's third quarter report included:
- A 72% decline in a loss before income taxes to $2.2 million for the third quarter of 2010 from $7.7 million in the year-earlier quarter, continuing an improving trend seen over the past year;
- A 56% decline in a loss before income taxes, excluding a goodwill impairment charge of $2.8 million in the third quarter of 2009;
- An ongoing year-over-year improvement in net interest margin, contributing to a 5% increase in net interest income for the third quarter of 2010 compared with the same quarter last year;
- Relative stability in non-performing loans and assets, which peaked in mid-2009; and
- Lower levels of net charge-offs, which contributed to a 54% decrease in the Company's provision for loan losses for the third quarter of 2010 compared with the year-earlier quarter and a decrease of 59% versus the provision for the second quarter of 2010.
On an after-tax basis, the Company recorded a net loss of $2.2 million or $0.16 per diluted share for the third quarter of 2010 compared with a net loss of $12.2 million or $0.93 per diluted share for the year-earlier quarter. For the first nine months of 2010, the net loss totaled $9.0 million or $0.68 per diluted share compared with a net loss of $19.9 million or $1.52 per diluted share for the first nine months of 2009. The Company no longer records the income tax benefit of its net losses following the establishment of a deferred tax asset valuation allowance during 2009. The inability to recognize an income tax benefit increased the net loss in the third quarter of 2009 by $4.5 million or $0.34 per diluted share.