- 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").
Atlantic Coast Financial Corporation Reports Second Quarter 2012 Results
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