Atlantic Coast Financial Corporation (the "Company")(NASDAQ: ACFC), the holding company for Atlantic Coast Bank (the "Bank"), today reported financial results for the fourth quarter and year ended December 31, 2011.
For the fourth quarter of 2011, the Company reported a net loss of $4.0 million or $1.61 per diluted share, compared with a net loss of $5.2 million or $2.02 per diluted share in the year-earlier quarter (as adjusted for the completion of the Company's second-step conversion in February 2011). For the year ended December 31, 2011, the Company's net loss narrowed to $10.3 million or $4.13 per diluted share from a net loss of $14.2 million or $5.51 per diluted share (on an adjusted basis) for 2010.
Notable highlights of the fourth quarter report included:
- Non-performing assets increased to $52.4 million at December 31, 2011, from $51.3 million on a linked-quarter basis at September 30, 2011, both above the $38.1 million level reported at December 31, 2010.
- Annualized net charge-offs to average loans increased to 3.34% for the fourth quarter of 2011 from 1.99% for the third quarter of 2011; annualized net charge-offs were 2.84% in the year-earlier fourth quarter.
- Total assets were $789.0 million at December 31, 2011, compared with $827.4 million at December 31, 2010, as the Company has continued to manage asset size consistent with 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 5.83%, 9.65%, and 10.91%, respectively, at December 31, 2011. Accordingly, 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") with the Office of Thrift Supervision (predecessor banking agency to the Office of the Comptroller of the Currency), dated May 13, 2011, the Bank was required to achieve and maintain a Tier 1 leverage ratio of 7% beginning on September 30, 2011.