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 Third 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 third quarter and nine months ended September 30, 2011.

For the third quarter of 2011, the Company reported a net loss of $1.4 million, down from a net loss of $1.5 million in the second quarter of 2011 and a net loss of $2.2 million in the year-earlier quarter. The net loss was equal to $0.55 per diluted share versus $0.61 per diluted share in the second quarter of 2011 and $0.83 per diluted share in the third quarter of 2010 (as adjusted for the completion of the Company's second-step conversion in February 2011). For the first nine months of 2011, the net loss totaled $6.3 million compared with a net loss in the year-earlier period of $9.0 million. On an adjusted basis, the net loss was equal to $2.52 per diluted share versus $3.49 per diluted share for the first nine months of 2010.

Notable highlights of the third quarter report included:
  • The Bank remained well capitalized in the third quarter of 2011, with a Tier 1 (core) capital ratio of 6.22% and a Total risk-based capital ratio of 11.08% at September 30, 2011.
  • Non-performing assets at September 30, 2011, increased to $51.3 million from $47.0 million on a linked-quarter basis at June 30, 2011, and compared with $30.2 million at September 30, 2010.
  • Annualized net charge-offs to average loans increased slightly to 1.99% for the third quarter of 2011 from 1.95% for the second quarter of 2011; annualized net charge-offs were 1.54% in the year-earlier third quarter.
  • The Company sold $85.0 million of mortgage-backed securities to lock-in net gains of approximately $2.5 million on securities susceptible to a high risk of prepayment following a steep decline in mortgage rates.
  • Total assets were $792.4 million at September 30, 2011, compared with $892.6 million at September 30, 2010, as the Company has continued to manage its asset size within its overall capital management strategy.

The Bank's Tier 1 leverage ratio, Tier 1 risk-based capital ratio and Total risk-based capital ratio were 6.22%, 9.82%, and 11.08%, respectively, at September 30, 2011. As such, they continued to exceed the required minimums of 5%, 6%, and 10%, respectively, necessary to be deemed a well-capitalized institution. However, under an Individual Minimum Capital Requirement agreement ("IMCR") dated May 13, 2011, between the Bank and the Office of the Thrift Supervision, the minimum required Tier 1 leverage ratio for the Bank was 7% as of September 30, 2011. Consistent with the terms of the IMCR, the Bank expects to be notified by the Office of the Comptroller of the Currency (the "OCC"), the successor agency to the Office of Thrift Supervision, that it must submit a capital plan for their approval that defines the actions and timeline necessary to achieve the 7% capital ratio level.

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
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs