This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Atlantic Coast Financial Corporation Reports Second Quarter 2012 Results

Stocks in this article: ACFC

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, 2012.

For the second quarter of 2012, the Company reported a net loss of $3.0 million or $1.20 per diluted share compared with a net loss of $1.5 million or $0.61 per diluted share in the year-earlier quarter and a net loss of $1.7 million or $0.69 per diluted share in the linked-quarter. For the first six months of 2012, the net loss totaled $4.7 million or $1.89 per diluted share compared with a net loss in the year-earlier period of $4.9 million or $1.98 per diluted share.

Notable highlights of the second quarter report included:

  • The Company's increased net loss compared with the year-earlier quarter was due primarily to a higher provision for loan losses and reduced non-interest income related to gains on investment security sales recorded in 2011. The increased net loss compared with the linked quarter was due primarily to reduced non-interest income, a higher provision for loan losses and increased non-interest expenses.
  • Non-performing assets decreased 11% to $40.8 million at June 30, 2012, from $46.1 million on a linked-quarter basis at March 31, 2012, and 22% from $52.4 million at December 31, 2011, with the improvements attributable primarily to a declining level of non-performing loans. Subsequent to the end of the quarter, the Company finalized the bulk sale of $4.0 million of non-performing loans, bringing the total reduction of non-performing assets in 2012 to $15.6 million or 29.8%. Losses attributable to this sale were recognized during the second quarter.
  • Annualized net charge-offs to average loans decreased slightly to 3.69% for the second quarter of 2012 from 3.91% in the first quarter of 2012, but increased from 1.95% for the year-earlier second quarter. Net charge-offs included $1.2 million related to the bulk sale of non-performing assets discussed above, which settled in July 2012.
  • Total assets were $778.5 million at June 30, 2012, compared with $789.0 million and $801.8 million at December 31, 2011, and June 30, 2011, respectively, as the Company has continued to manage asset size consistent with its overall capital management strategy.
  • Subsequent to June 30, 2012, the Company modified its agreement with one of the counterparties to its reverse repurchase agreement debt. The changes to the agreement significantly reduce the Company's exposure to the risk of loss by removing the counterparty's option to terminate the debt at market value in the event the Bank becomes less than adequately capitalized or receives a cease and desist order from the Office of the Comptroller of the Currency ("OCC").

Commenting on the second quarter results, G. Thomas Frankland, President and Chief Executive Officer, said, "Following the improvements we cited in our first quarter report, we were pleased to see the Company continue to make headway in several key areas during the second quarter. Specifically, we witnessed further progress in reducing non-performing assets and lowering deposit costs. We also reduced non-interest expense compared with the year-earlier quarter and for the first half of the year versus the same period in 2011. Additionally, we are encouraged by the efforts of our retail banking team as it continues to show good progress in lower cost deposit production, as well as our warehouse and small business lending teams as they continue to build loan income. Lastly, our operations team has been successful in pursuing cost initiatives that will further reduce our non-interest expense.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs