Exhibit 99.1
With Solid Performance in 2005, Atlantic Coast Federal Corporation
Anticipates Expansion in 2006;
Stockholders Elect Directors and Ratify Auditor Selection
WAYCROSS, Ga.--(BUSINESS WIRE)--May 12, 2006--Speaking to
stockholders assembled for the 2006 annual meeting, Robert J. Larison,
Jr., President and Chief Executive Officer of Atlantic Coast Federal
Corporation (NASDAQ/NM: ACFC), the holding company for Atlantic Coast
Federal, commented on the Company's success in 2005 and its plans for
expansion in 2006.
"Highlighting our growth in 2005 was a 17% increase in total
assets, which rose to $744 million. This level, almost doubling since
2001, reflected successful efforts to strengthen our lending
activities and expand our loan portfolio. Together with further
improvements in asset quality, this continued progress translated into
higher earnings for the year." Larison observed that net income for
2005 increased 47% to $4.7 million. On a per share basis, net income
for the year increased to $0.33 versus $0.32 in 2004, with the
disproportionate change in earnings per share caused by the 40%
increase in weighted average shares outstanding versus 2004 following
the Company's initial public offering in 2004.
Larison also noted that, because of its growth, Atlantic Coast
Federal Corporation was able to commence cash dividend payments in
2005 and has increased these payments every quarter thereafter. The
Company's Board set the initial quarterly cash dividend rate at $0.05
per share in the first quarter of 2005 and increased the rate to $0.06
in the second quarter, $0.07 in the third quarter, and $0.08 per share
with the fourth quarter declaration. Most recently, for the first
quarter of 2006, Atlantic Coast Federal Corporation again increased
its cash dividend rate to $0.09 per share.
Concluding, Larison added: "We are pleased with the ongoing growth
we are experiencing across our markets and are particularly excited
about the potential of the Jacksonville area, where we have our
largest presence. In the next year, we will open two new branches in
St. Johns County in communities just to the south of metropolitan
Jacksonville. St. Johns County is a demographically attractive area
that has benefited greatly from the region's continued growth, and our
new branches there will logically expand and build on the footprint of
our Jacksonville banking network."
In formal business conducted at the meeting, stockholders
re-elected three directors to three-years terms that expire with the
2009 annual meeting: Frederick D. Franklin, Jr., a partner in the law
firm of Rogers Towers, P.A., in Jacksonville, Florida; Robert J.
Smith, a mortgage banking executive with PHH Mortgage in Jacksonville
and a certified public accountant; and H. Dennis Woods, retired former
business manager with CSX Transportation, Inc. in Waycross.
The Company's Directors continuing in office to future years
include: Robert J. Larison, Jr., President and Chief Executive Officer
of Atlantic Coast Federal Corporation; W. Eric Palmer, Director of
Patient Financial Services with the Mayo Clinic in Jacksonville; Jon
C. Parker, Sr., Senior Vice President and Chief Financial Officer of
Atlantic Coast Federal Corporation; Charles E. Martin, Jr., Chairman
of the Board of Atlantic Coast Federal Corporation; Forrest W. Sweat,
Jr., a partner in the law firm of Walker & Sweat, Waycross, Georgia;
and Thomas F. Beeckler, owner, President and Chief Executive Officer
of the Beeckler Company in Jacksonville.
Each of the Directors of Atlantic Coast Federal Corporation also
serves in similar capacities with Atlantic Coast Federal, MHC and
Atlantic Coast Federal, the Company's banking institution.
Stockholders also ratified the appointment of Crowe Chizek and
Company LLC as the Company's independent registered public accounting
firm for 2006.
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 $771 million in assets
as of March 31, 2006, 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. Statements in this release
that are not strictly historical are forward-looking and are based
upon current expectations that may differ materially from actual
results. These forward-looking statements, identified by words such as
"will," expected, "believe," and "prospects," involve risks and
uncertainties that could cause actual results to differ materially
from those anticipated by the statements made herein. These risks and
uncertainties involve general economic trends and changes in interest
rates, increased competition, changes in consumer demand for financial
services, the possibility of unforeseen events affecting the industry
generally, the uncertainties associated with newly developed or
acquired operations, and market disruptions and other effects of
terrorist activities. The Company undertakes no obligation to release
revisions to these forward-looking statements publicly to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unforeseen events, except as required to be reported
under the rules and regulations of the Securities and Exchange
Commission.
CONTACT: Corporate Communications, Inc.
Patrick J. Watson, 615-254-3376