Exhibit 99.1
Atlantic Coast Federal Corporation Announces Fourth Quarter and
Year-End Results for 2004
WAYCROSS, Ga.--(BUSINESS WIRE)--March 16, 2005--Atlantic Coast
Federal Corporation (NASDAQ/NM:ACFC), the holding company for Atlantic
Coast Federal, today announced financial results for the fourth
quarter and year ended December 31, 2004. Highlights of the fourth
quarter included the completion of the Company's initial public
offering, higher comparable net interest income, and continued growth
in the Company's loan portfolio.
"There's no question that 2004 was a milestone year for Atlantic
Coast Federal, with notable achievements in many areas," remarked
Robert J. Larison, Jr., President and Chief Executive Officer.
"Despite an environment that continued to present many challenges, we
posted record net interest income for the year, underscoring strong
loan volume and stable interest margins. This loan growth in turn
helped push our year-end loan portfolio up 19% and over the $500
million mark for the first time in our history. At the same time, we
were pleased to see our deposits advance in step with asset growth,
increasing 11% during 2004 to a record year-end amount. These
accomplishments point to the fundamental strength of our business, the
success of our strategies, and the potential of our markets,
especially as we focus more attention and resources on the
metropolitan Jacksonville area.
"Of course, the most significant event of the fourth quarter was
the completion of our initial public stock offering on October 4,
2004," Larison continued. "The capital provided by the offering will
strengthen our ability to meet the financial needs of our markets,
expand our product offering, and extend the reach of our branch
network. During the fourth quarter, we also were fortunate to name new
senior management to our executive team. This additional expertise and
leadership should help us continue to capitalize on the opportunities
we see ahead."
For the fourth quarter of 2004, the Company's net interest income
increased 11% to $5.3 million from $4.8 million in the fourth quarter
of 2003. The provision for loan losses for the period increased to
$648,000 from $138,000 in the fourth quarter of 2003, in step with
higher loan volume in 2004 and reflecting a reduction in the provision
in the year-earlier quarter based on an improving outlook. Net
interest income, after provision for loan losses, was $4.6 million in
the fourth quarter of 2004 and largely unchanged from the fourth
quarter of 2003. Net income for the fourth quarter was $493,000 or
$0.03 per share compared with $750,000 or $0.09 per share in the same
period last year, with the decline primarily reflecting the initial
impact of the Atlantic Coast Federal Employee Stock Ownership Plan,
which was implemented in connection with the Company's recent initial
public offering.
For the year ended December 31, 2004, the Company's net interest
income increased 2% to $19.9 million from $19.4 million in 2003. The
provision for loan losses for the year declined to $3.0 million from
$4.2 million in 2003, primarily because of a significant specific
reserve in the earlier period related to one commercial real estate
loan relationship. The majority of this loan balance was charged-off
in first quarter of 2004. Net interest income, after provision for
loan losses, increased 11% to $16.9 million in 2004 from $15.2 million
in 2003. Net income for 2004 was $3.2 million or $0.32 per share
compared with $4.4 million or $0.51 per share in 2003; in addition to
the increased fourth quarter expenses noted above, the difference in
income year over year also reflected a gain in 2003 related to the
sale of the Company's credit card portfolio.
At December 31, 2004, the Company's total assets increased 28% to
$637.7 million from $498.4 million at December 31, 2003. Loans
receivable, net increased 19% to $517.7 million at December 31, 2004,
from $435.6 million at December 31, 2003. Deposits rose 11% to $435.7
million at December 31, 2004, from $392.3 million at December 31,
2003. Total stockholders' equity increased 128% to $98.7 million at
December 31, 2004, primarily because of the Company's fourth quarter
initial public offering, versus $43.2 million at the end of 2003.
Return on average stockholders' equity for the fourth quarter and
the year ended December 31, 2004, was 2.40% and 5.87%, respectively,
versus 6.89% and 10.77%, respectively, for the comparable periods last
year. Return on average total assets for the fourth quarter and year
ended December 31, 2004, was 0.30% and 0.55%, respectively, compared
with 0.60% and 0.91%, respectively, for the same periods in 2003.
Concluding, Larison added, "Considering the solid momentum that
characterized our business as 2004 came to a close, we approach the
coming year with a great deal of excitement and enthusiasm. We believe
the additional financial strength provided by our recent offering
greatly enhances our ability to execute the growth strategy we have in
place, which centers on increased business and an expanded presence in
the fast-growing metropolitan Jacksonville area.
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 approximately $638 million in assets
as of December 31, 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
"potential," "should," and "believe," 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 Year Ended
December 31, December 31,
------------------- -------------------
2004 2003 2004 2003
-------- -------- -------- --------
Total interest income $ 8,466 $ 7,537 $ 31,772 $ 31,212
Total interest expense 3,215 2,789 11,916 11,781
-------- -------- -------- --------
Net interest income 5,251 4,748 19,856 19,431
Provision for loan losses 648 138 2,975 4,238
-------- -------- -------- --------
Net interest income after
provision for loan losses 4,603 4,610 16,881 15,193
Non-interest income 1,328 645 5,322 7,533
Non-interest expense 5,193 4,145 17,256 15,911
-------- -------- -------- --------
Income before income taxes 738 1,110 4,947 6,815
Income tax expense 245 360 1,755 2,398
-------- -------- -------- --------
Net income $ 493 $ 750 $ 3,192 $ 4,417
======== ======== ======== ========
Basic and diluted
earnings per share $ 0.03 $ 0.09 $ 0.32 $ 0.51
======== ======== ======== ========
Basic and diluted weighted
average shares 13,850 8,728 10,016 8,728
======== ======== ======== ========
Dec. 31, Dec. 31,
2004 2003
-------- --------
Total assets $637,678 $498,417
Cash and cash equivalents 25,708 8,996
Securities available for sale 53,363 26,039
Loans receivable, net 517,711 435,622
Total deposits 435,682 392,256
Federal Home Loan Bank advances 100,314 60,971
Stockholders' equity 98,700 43,218
Selected Consolidated Financial Ratios and Other Data (unaudited)
for the fourth quarter and year ended December 31, 2004 and 2003, may
be found at the following link: http://www.irinfo.com/acfc/4Q04fs.pdf.
Investors should refer to the Company's Form 10-K for the year ended
December 31, 2004, for additional information and disclosures; the
Form 10-K will be available at the Investor Information section of the
Company's website immediately upon filing with the Securities and
Exchange Commission.
CONTACT: For Atlantic Coast Federal Corporation:
Patrick J. Watson, 615-254-3376