EXHIBIT 99.1

                            ATLANTIC BANCGROUP, INC.
                           JACKSONVILLE BEACH, FLORIDA
                              FOR IMMEDIATE RELEASE

     JACKSONVILLE BEACH, FLORIDA, May 20, 2003: Barry W. Chandler, President and
Chief  Executive  Office of Atlantic  BancGroup,  Inc.  announced today that the
Company's  Board of Directors  declared a 20% stock dividend on its common stock
payable on June 16, 2003.

     As a result of the dividend,  the Company's  shareholders  will receive one
additional share of stock for every five shares that they own on the record date
of May 30, 2003. President Chandler stated "the dividend should help to make our
stock more  attractive to the  investment  community and increase the numbers of
shares  held by  investors."  Following  the  dividend,  the  Company  will have
1,247,528 shares of common stock outstanding.

     Through its subsidiary, Oceanside Bank, Atlantic BancGroup, Inc. operates 3
banking  offices  in  the   Jacksonville   Beaches  and  West  Beaches  area  of
Jacksonville, Florida. Atlantic BancGroup, Inc. stock is presently traded on the
NASDAQ  Bulletin  Board under the symbol ATBC.  The current  market maker in the
stock is E.E. Powell and Company 1-800-289-7865.

     For  additional  information  contact Barry W. Chandler,  President/CEO  or
David Young EVP/CFO at (904) 247 9494.