Atlantic Coast Financial Corp (fka ACFC)

[Enterprising Investor]

Atlantic Coast Financial Corporation Reports Second Quarter 2014 Results (7/30/14)

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Atlantic Coast Financial Corporation (the “Company”) (NASDAQ: ACFC), the holding company for Atlantic Coast Bank (the “Bank”), today reported earnings per share of $0.02 for the second quarter ended June 30, 2014, continuing a profitable trend that resumed in the first quarter of 2014.

Commenting on the second quarter, John K. Stephens, Jr., President and Chief Executive Officer, said, “Our second quarter results demonstrate that Atlantic Coast is making steady headway toward its long-term goals, and our dedication to improving our product base and expanding our reach within the local community is helping to lead the way. This progress would not be possible without the outstanding work of Atlantic Coast’s people, including our many new hires who accounted for a nearly 20% increase in our employee base and who are providing a catalyst for new growth initiatives. Every day our employees help create a better bank, while continuing to focus their efforts on the needs of our clients. While we still face challenges, our plan is working and our core business continues to grow stronger. I believe the prospects for Atlantic Coast are clear and bright.”

Stephens continued, “In addition to our improving financial performance, our efforts to strengthen our senior management team reached a major milestone recently with the naming of Jay Lent as our new Chief Financial Officer. Jay brings to our company the skills and experience gained from a banking career that has spanned more than 30 years.”

Significant highlights of the second quarter and first half of 2014 included:

• Net income improved to $0.2 million or $0.02 per diluted share during the quarter ended June 30, 2014, from a net loss of $1.5 million or $0.62 per diluted share for the year-earlier quarter. Excluding costs associated with a proposed merger that stockholders rejected in June 2013, the adjusted net loss for the second quarter of 2013 was $0.4 million or $0.17 per diluted share during the year-earlier quarter (adjusted net loss is a non-GAAP measurement; see reconciliation of GAAP and non-GAAP measures at page 5 in this release).

• Net income improved to $0.4 million or $0.03 per diluted share for the six months ended June 30, 2014, versus a net loss of $3.6 million or $1.43 per diluted share and an adjusted net loss of $2.3 million or $0.91 per diluted share for the same period in 2013.

• Nonperforming assets decreased 63% to $9.4 million or 1.33% of total assets at June 30, 2014, from $25.2 million or 3.40% of total assets at June 30, 2013, but increased 6% from $8.9 million or 1.26% of total assets at March 31, 2014.

• Total assets declined to $710.1 million at June 30, 2014, compared with $733.6 million at December 31, 2013, primarily due to the maturity of $26.5 million of the Company’s repurchase agreements during the first quarter of 2014.

• The Company’s ratios of both Tier 1 capital to adjusted total assets and total risk-based capital improved to 10.17% and 18.75%, respectively, and they continued to exceed the levels – 9% and 13%, respectively – required by the Bank’s Consent Order (the “Order”) entered into with the Office of the Comptroller of the Currency effective August 10, 2012.

Jay Lent, Executive Vice President and Chief Financial Officer, added, “Upon joining Atlantic Coast, I was very impressed with the level of effort I observed from our employees and their determination to help this bank succeed. Through those efforts, Atlantic Coast delivered another positive quarter, with strong contributions from all of our business units. Our stronger balance sheet, loan growth, and a profitable second quarter are evidence that we are meeting the goals set by senior management after our successful capital raise.”

[Click on the link below to review the remainder of the press release and financial tables]

http://www.businesswire.com/news/home/20140730005877/en/Atlantic-Coast-Financial-Corporation-Reports-Quarter-2014#.U9l0Mol0yUk