WAYCROSS, Ga. – Credit union convert Atlantic Coast Bank abandoned the second-step of its two step conversion to publicly traded bank yesterday, citing adverse market conditions for bank and thrift stocks.
The failed conversion costs the former credit union, known until 2001 as Atlantic Coast FCU, about $1.1 million, before taxes, for the fourth quarter, the ex-credit union reported yesterday. "Market conditions for bank and thrift stocks, especially in the Florida market, have changed significantly since we began the stock offering process seven months ago. The ongoing problems in the residential mortgage lending market continue to depress the securities market for most financial institutions," said Atlantic Coast President Robert Larison, Jr., who converted the credit union to mutual savings bank.
Under the first step of the two-step conversion, the credit union convert sold stock to its depositors in 2003 but retained a majority of the shares in a mutual holding company. Under the second step the majority of shares was supposed to be sold to the public.
