This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Atlantic Coast Financial Corporation Reports First Quarter 2011 Results

Atlantic Coast Financial Corporation (the "Company") (NASDAQ: ACFC), the holding company for Atlantic Coast Bank (the "Bank"), today reported financial results for the first quarter ended March 31, 2011.

For the first quarter of 2011, the Company reported a net loss of $3.4 million compared with a net loss in the year-earlier quarter of $2.8 million. The net loss was equal to $1.36 per diluted share versus $1.07 per diluted share in the first quarter of 2010 (as adjusted for the completion of the second-step conversion).

The Company's higher net loss for the first quarter of 2011 primarily reflected increased compensation costs related to the expansion of its mortgage banking and small business lending areas as well as higher credit related costs. The Company also recognized higher non-interest expenses due to certain benefit plans previously revised for the benefit of the Company and subject to restoration upon the completion of the Company's second-step conversion. These expenses were offset partially by a lower provision for loan losses and an increase in non-interest income.

Other notable aspects of the Company's first quarter report included:
  • As previously reported, the Company completed its second-step conversion and offering in February, raising $14.4 million in new capital, net of expenses.
  • The Bank remained well capitalized in the first quarter of 2011, with a Tier 1 (core) capital ratio of 6.3% and a total risk-based capital ratio of 11.4% at March 31, 2011.
  • Non-performing assets at March 31, 2011, increased to $39.7 million on a linked-quarter basis from $38.1 million at December 31, 2010, but was largely unchanged from $39.4 million at March 31, 2010.
  • Annualized net charge-offs to average loans declined to 1.75% for the first quarter of 2011 from 2.84% for the fourth quarter of 2010 and 2.69% for the year-earlier first quarter.
  • As part of its capital management strategy, the Company continued to shrink its balance sheet in the first quarter, as total assets declined to $810.1 million at March 31, 2011, from $827.4 million at December 31, 2010, and $914.0 million at March 31, 2010.

Commenting on the first quarter results, G. Thomas Frankland, President and Chief Executive Officer, said, "We have continued to deal aggressively with our credit quality issues. Our main focus continues to be on reducing delinquent and non-performing loans, and our efforts this quarter yielded positive, although modest improvements. While non-performing assets did increase slightly on a linked-quarter basis, the trend in new non-performing loans has flattened over the last several quarters. This led to lower net charge-offs for the first quarter of 2011 and a reduction in the provision for loan loss expense compared with both the fourth and first quarters of 2010.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs