- Net loss for the 2012 third quarter decreased compared with the linked quarter primarily due to a lower provision for loan losses and lower non-interest expense, as well as higher gains on investment security sales, which helped offset a decrease in net interest income. The quarterly net loss increased compared with the year-earlier quarter primarily due to lower net interest income and a lesser amount of gains from investment security sales, partially offset by lower provision for loan losses and non-interest expense.
- Non-performing assets decreased 16.2% to $34.2 million, or 4.35% of total assets, at September 30, 2012, from $40.8 million on a linked-quarter basis at June 30, 2012, and 34.7% from $52.4 million at December 31, 2011.
- Annualized net charge-offs to average loans decreased to 2.43% for the third quarter of 2012 from 3.69% in the second quarter of 2012, but increased from 1.99% for the year-earlier third quarter.
- Total assets were $784.8 million at September 30, 2012, compared with $789.0 million and $792.4 million at December 31, 2011, and September 30, 2011, respectively, as the Company has continued to manage asset size consistent with its overall capital management strategy.
- In July 2012, the Company modified its agreement with one of the counterparties to its reverse repurchase agreement debt. The changes to the agreement significantly reduced 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 as occurred in August 2012, enters into a consent order with the Office of the Comptroller of the Currency (the "OCC").
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, 2012. For the third quarter of 2012, the Company reported a net loss of $1.7 million or $0.66 per diluted share compared with a net loss of $1.4 million or $0.55 per diluted share in the year-earlier quarter and a net loss of $3.0 million or $1.20 per diluted share in the second quarter of 2012. For the first nine months of 2012, the net loss totaled $6.4 million or $2.55 per diluted share compared with a net loss in the year-earlier period of $6.3 million or $2.52 per diluted share. Notable highlights of the third quarter included: