Exhibit 99.1


             Atlantic Coast Federal Corporation Increases
             Quarterly Dividend to $0.15 Per Common Share


    WAYCROSS, Ga.--(BUSINESS WIRE)--Sept. 28, 2007--Atlantic Coast
Federal Corporation (NASDAQ: ACFC), the holding company for Atlantic
Coast Bank, today announced that its Board of Directors has voted to
increase the Company's regular quarterly cash dividend rate on common
stock to $0.15 per share. This new rate represents a $0.01 increase
from the preceding quarter and goes into effect with the next dividend
that will be paid on October 29, 2007, to all stockholders of record
as of October 12, 2007.

    Atlantic Coast Federal, MHC, which holds 8,728,500 shares or
approximately 64% of the Company's total outstanding stock, will waive
receipt of the dividend on its shares.

    Commenting on the announcement, Robert J. Larison, Jr., President
and Chief Executive Officer, said, "We are pleased to be able to raise
the Company's quarterly dividend rate again, continuing our efforts to
enhance shareholder value over the long term. The Board's decision to
increase our dividend reflects the confidence we have in our business
and the outlook for growth we see across our markets, as well as our
ability to take advantage of these ongoing opportunities with the
additional capital we expect to raise in our pending second-step
offering."

    Atlantic Coast Federal Corporation is the holding company for
Atlantic Coast Bank, 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.AtlanticCoastBank.net,
under the Investor Information section.

    Atlantic Coast Bank, with approximately $898.4 million in assets
as of June 30, 2007, is a community-oriented financial institution. It
serves southeastern Georgia and northeastern Florida through 14
offices, including a focus on 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.

    As previously announced, Atlantic Coast Federal Corporation and
Atlantic Coast Federal, MHC have formed Atlantic Coast Financial
Corporation, a Maryland holding company, to become the new holding
company of Atlantic Coast Bank in connection with the mutual-to-stock
conversion of Atlantic Coast Federal, MHC. A registration statement
relating to these securities has been filed with the Securities and
Exchange Commission but has not yet become effective. These securities
may not be sold nor may offers to buy be accepted prior to the time
the registration statement becomes effective. This press release shall
not constitute an offer to sell or the solicitation of an offer to buy
shares of common stock nor shall there be any sale of these securities
in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such state. The securities are not savings accounts or
savings deposits, may lose value and are not insured by the Federal
Deposit Insurance Corporation or any government agency.


    CONTACT: Corporate Communications, Inc.
             Patrick J. Watson, 615-254-3376