Atlantic Coast Financial Corp (fka ACFC)

[free_bee]

Some highlights from Pre-Effective Amendment No. 2 to
FORM S-1.


http://google.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9598833-809-314213&type=sect&TabIndex=2&companyid=749177&ppu=%252fdefault.aspx%253fsym%253dACFC



1. The Jacksonville metropolitan statistical area (MSA), with deposits of $48 billion as of June 30, 2013, is the third largest market in Florida by deposits, with an above average compounded annual deposit growth rate of 7.6% from 2008 to 2013 compared to 3.2% for the state of Florida.

2. Due to the Jacksonville MSA’s improving economy, the unemployment rate has declined from 11.4% at its peak in January 2010 to 6.7% at August 31, 2013. The northeast Florida economy is trending up with single family home sales increasing from 12,586 in 2008, to 17,718 in 2012 and 21,884 on an annualized basis through September 30, 2013. Average median home prices have followed this upward trend increasing from $125,000 in December 2011 to $135,000 in December 2012 and $170,600 through September 30, 2013.

3. Our adjusted net loss for the first nine months of 2013 was $3.2 million or $1.29 per diluted share, respectively.

4. Warehouse Lending and SBA Lending . We will use the new capital raised in this offering to continue to expand our warehouse lending and SBA lending activities. Since 2009, when we first entered the warehouse lending business, we experienced steady growth in our warehouse lending business and we currently have annualized production of approximately $1.1 billion resulting in average outstanding balances of $49.0 million. The average yield on warehouse loans in 2013 is 5.07%. We entered the SBA lending business in late 2010 and have quickly become a local market leader with annualized sales of $8.6 million resulting in annualized gains of $1.1 million. The growth in both lines of business has been constrained due to our capital and liquidity issues. We believe that both warehouse and SBA lending are very profitable and, with the proper level of capital, expect these lines of business to experience significant growth.

5. Atlantic Coast Bank’s capital classification as of September 30, 2013, was adequately capitalized.