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Atlantic Coast Financial Corporation (the "Company")(NASDAQ: ACFC), the holding company for Atlantic Coast Bank (the "Bank"), today reported financial results for the second quarter and six months ended June 30, 2011.
For the second quarter of 2011, the Company reported a net loss of $1.5 million, down from a net loss of $3.4 million in the first quarter of 2011 and a net loss of $4.1 million in the year-earlier quarter. The net loss was equal to $0.61 per diluted share versus $1.36 per diluted share in the first quarter of 2011 and $1.58 per diluted share in the second quarter of 2010 (both as adjusted for the completion of the Company's second-step conversion in February 2011). For the first six months of 2011, the net loss totaled $4.9 million compared with a net loss in the year-earlier period of $6.8 million. On an adjusted basis as previously mentioned, the net loss was equal to $1.98 per diluted share versus $2.65 per diluted share for the first six months of 2010.
Other notable aspects of the Company's second quarter report included:
The Bank remained well capitalized in the second quarter of 2011, with a Tier 1 (core) capital ratio of 6.30% and a total risk-based capital ratio of 11.28% at June 30, 2011.
Non-performing assets at June 30, 2011, increased to $47.0 million from $39.7 million on a linked-quarter basis at March 31, 2011, and $38.1 million at December 31, 2010.
Annualized net charge-offs to average loans increased to 1.95% for the second quarter of 2011 from 1.75% for the first quarter of 2011, but decreased from 6.83% in the year-earlier second quarter.
Total assets were $801.8 million at June 30, 2011, compared with $901.4 million at June 30, 2010, as the Company has continued to manage its asset size within its overall capital management strategy in order to balance earnings with targeted capital levels.
Commenting on the second quarter results, G. Thomas Frankland, President and Chief Executive Officer, said, "In the first full quarter following our conversion to a stock company, we have made meaningful progress on a number of fronts. With our recent management realignment that resulted in my appointment as permanent President and Chief Executive Officer, after serving in that position on an interim basis, and with Jay Sidhu's appointment as Chairman of the Board of Directors, we have increased management’s focus on the challenges and opportunities facing both our industry and Atlantic Coast Financial Corporation. Momentum is building with our small business lending platform, where we quickly have become a relevant lender in the SBA lending market from central Florida to Savannah, Georgia. Our warehouse lending platform also continues to mature, rebounding nicely in the second quarter following a market slowdown in the first quarter and returning to levels seen in the fourth quarter of 2010. Likewise, we are pleased with our core deposit growth and concurrent reduction in the cost of deposits, which has strengthened our net interest margin.