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Bond Street Holdings has agreed to pay a premium of nearly 50% for the struggling Atlantic Coast, the companies announced Tuesday. Atlantic Coast announced it was exploring the possibility of a merger more than a year ago.
February 26 -
Shareholders of Atlantic Coast Financial (ACFC) will no longer have to wait a year for 40% of their payout.
April 23 -
High-profile investor Jay Sidhu says he still plans to vote against the sale of Atlantic Coast in Jacksonville even though Bond Street has agreed to pay shareholders $5 a share up front, instead of withholding $2 a share for a year to cover litigation costs.
April 24
Atlantic Coast Financial's (ACFC) quarterly loss widened as its lending income fell and expenses rose.
The Jacksonville, Fla., company said Wednesday that it lost $2 million in the first quarter, compared with a $1.7 million loss a year earlier.
It also reported that the Federal Reserve Bank of Atlanta has
The deal now hinges on the approval of Atlantic Coast's shareholders, who are scheduled to vote June 11. Last month, the two companies
Atlantic Coast said in its earnings release that Bond Street's offer represents "the best overall solution" to improve its capital position and will "result in a more competitive bank franchise in the marketplace."
The Office of the Comptroller of the Currency last year required it to hold Tier 1 capital of 9% and total risk-based capital of 13%. Those ratios were 5.03% and 9.81% on March 31.
The $748 million-asset Atlantic Coast said its net interest income fell 13% compared with the first quarter of 2012, to $4.3 million, because of lower loan yields and a reduction in warehouse lending. Its net interest margin contracted by 23 basis points, to 2.42%.
Noninterest income fell 20%, to $1.7 million, as gains on mortgage-loan sales decreased, while noninterest expense rose 28%, to $6.9 million, thanks partly to a $500,000 penalty for the prepayment of $25 million of Federal Home Loan Bank advances, the company said.
Atlantic Coast's asset quality improved compared with the prior-year quarter. Its provision for loan losses fell to $1.2 million, from $3.5 million, and its net chargeoffs were $1.7 million, down from $5.5 million. Nonperforming assets stood at $29.3 million, a 36% reduction.
