Exhibit 99.1
Atlantic Coast Federal Corporation Announces Earnings
for the Third Quarter and First Nine Months of 2004
WAYCROSS, Ga.--(BUSINESS WIRE)--Nov. 11, 2004--Atlantic Coast
Federal Corporation (NASDAQ/NM: ACFC), the holding company for
Atlantic Coast Federal, today announced financial results for the
third quarter and nine-month period ended September 30, 2004.
Net income for the third quarter of 2004 was $1,004,000 compared
with $3,014,000 in the same period last year. Net interest income,
after provision for loan losses, was $4,336,000 in the third quarter
of 2004 compared with $4,601,000 in the third quarter last year.
For the first nine months of 2004 net income was $2,698,000
compared with $3,667,000 in the comparable period last year. Net
interest income, after provision for loan losses, was $12,277,000 for
the first nine months of 2004 versus $10,583,000 in the same period
last year.
"The third quarter of 2004 marked an exciting turning point in our
Company's history, as we continued our work toward the completion of
our public offering," remarked Robert J. Larison, Jr., President and
Chief Executive Officer of Atlantic Coast Federal Corporation.
"Finalized in early October, our initial public stock offering was
very successful, raising approximately $51.7 million in new capital,
excluding shares issued to the Company's ESOP, and we were gratified
by the warm reception our shares received from investors as trading
commenced on October 5, 2004. The capital provided by this
transaction, along with the fundamental growth of our business, will
strengthen our ability to serve the needs of the communities in which
we are located, expand our product offering, and extend the reach of
our branch network. We look forward to a new era for this historic
financial institution as a public company."
Regarding the Company's financial results for the quarter, Larison
noted that the year-over-year change in earnings reflected primarily a
$3.1 million gain on the sale of the Company's credit card portfolio
in the third quarter of 2003, which did not recur in the third quarter
of 2004, as well as a higher provision for loan losses in the third
quarter of 2004. An increase in net interest income for the third
quarter of 2004 versus the same period last year, along with lower
non-interest expense, helped offset these factors to some extent. The
increase in net interest income reflected a higher level of interest
earning assets - mainly due to continued strong loan originations and
lower loan prepayments, which more than compensated for a decline in
net interest margin for the third quarter of 2004.
Concluding, Larison added, "At the end of the third quarter, our
regulatory capital ratios highlighted the Company's status as 'well
capitalized,' based on the minimum requirements promulgated by the
Office of Thrift Supervision. The completion of our initial public
stock offering in October will significantly enhance our capital
position going forward, positioning us for continued loan growth and
supporting our other expansion initiatives. Importantly, this growth
should help offset somewhat the impact of a low interest-rate
environment, which continues to pressure our net interest margins, and
our strategy to refocus our loan portfolio on home mortgage lending
and away from automobile and consumer loans."
At September 30, 2004, the Company's total assets increased 25% to
$623,079,000 from $498,108,000 at December 31, 2003. Loans receivable,
net, increased 16% to $508,048,000 at September 30, 2004, from
$436,109,000 at December 31, 2003. Deposits rose 13% to $444,527,000
at September 30, 2004, from $392,256,000 at December 31, 2003. Total
shareholders' equity increased 6% to $45,880,000 at September 30,
2004, versus $43,218,000 at the end of 2003.
Return on average shareholders' equity for the third quarter and
the nine months ended September 30, 2004, was 8.92% and 7.99%,
respectively, versus 29.56% and 12.32%, respectively, for the
comparable periods last year. Return on average total assets for the
third quarter and nine months ended September 30, 2004, was 0.72% and
0.64%, respectively, compared with 2.50% and 1.04%, respectively, for
the same periods in 2003.
Atlantic Coast Federal Corporation is the holding company for
Atlantic Coast Federal, a federally chartered and insured stock
savings association that was organized in 1939 as a credit union to
serve the employees of the Atlantic Coast Line Railroad. In November
2000, the credit union converted its charter from a federal credit
union to a federal mutual savings association and, in January 2003,
Atlantic Coast Federal Corporation was formed as the holding company.
The Company completed its initial public stock offering in October
2004. Investors may obtain additional information about Atlantic Coast
Federal Corporation on the Internet at www.acfederal.net, under the
Investor Information section.
Atlantic Coast Federal, with $623 million in assets as of
September 30, 2004, is a community-oriented financial institution. It
serves southeastern Georgia and northeastern Florida through 13
offices, including a growing presence in the Jacksonville metropolitan
area.
This news release contains forward-looking statements within the
meaning of the federal securities laws, identified by words such as
"will," "should," "positioning," and "supporting," or similar
expressions. Such statements are subject to risks and uncertainties,
including but not limited to changes in national economic conditions
or those in Atlantic Coast Federal Corporation's market area, changes
in policies by regulatory agencies, fluctuations in interest rates,
demand for loans in Atlantic Coast Federal Corporation's market area,
changes in the position of banking regulators on the adequacy of its
allowance for loan losses, and competition, all or some of which could
cause actual results to differ materially from historical earnings and
those presently anticipated or projected. Atlantic Coast Federal
Corporation does not undertake, and specifically disclaims any
obligation, to update any forward-looking statements to reflect
occurrences or unanticipated events or circumstances after the date of
such statements.
ATLANTIC COAST FEDERAL CORPORATION
Unaudited Financial Highlights
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Total interest income $ 8,096 $ 7,605 $ 23,305 $ 23,675
Total interest expense 3,085 2,816 8,701 8,992
--------- --------- --------- ---------
Net interest income 5,011 4,789 14,604 14,683
Provision for
loan losses 675 188 2,327 4,100
--------- --------- --------- ---------
Net interest income
after provision for
loan losses 4,336 4,601 12,277 10,583
Non-interest income 1,308 4,340 3,994 6,888
Non-interest expense 4,059 4,146 12,063 11,766
--------- --------- --------- ---------
Income before
income taxes 1,585 4,795 4,208 5,705
Income tax expense 581 1,781 1,510 2,038
--------- --------- --------- ---------
Net income $ 1,004 $ 3,014 $ 2,698 $ 3,667
========= ========= ========= =========
Basic and diluted
earnings per share $1,003.95 $3,013.90 $2,698.45 $3,667.10
========= ========= ========= =========
Weighted average shares:
Basic 1 1 1 1
========= ========= ========= =========
Diluted 1 1 1 1
========= ========= ========= =========
Sept. 30, Dec. 31,
2004 2003
--------- ---------
Total assets $ 623,079 $ 498,108
Cash and cash equivalents 43,623 8,996
Securities available for sale 31,592 26,039
Loans receivable, net 508,048 436,109
Deposits 444,527 392,256
Federal Home Loan Bank advances 90,314 60,971
Shareholders' equity 45,880 43,218
Selected Consolidated Financial Ratios and Other Data (unaudited)
for the third quarter and nine months ended September 30, 2004 and
2003, may be found at the following link:
http://www.irinfo.com/acfc/3Q04fs.pdf. Investors should refer to the
Company's Form 10-Q for the third quarter of 2004 for additional
information and disclosures; the Form 10-Q will be available at the
Investor Information section of the Company's website immediately upon
filing with the Securities and Exchange Commission.
CONTACT: Atlantic Coast Federal Corporation
Patrick J. Watson, 615-254-3376