Atlantic Coast Financial Corporation (Atlantic Coast or the Company)ACFC, the holding company for Atlantic Coast Bank (the Bank), today reported earnings per diluted share of $0.09 for the second quarter of 2016 compared with earnings of $0.36 per share in the same quarter last year. Results for the year-earlier quarter included the positive impact of the reversal of a valuation allowance against the Company's deferred tax asset, which was partially offset by penalties associated with the early prepayment of some of the Company's wholesale debt. Together these transactions added approximately $0.34 to earnings per diluted share for the second quarter of 2015. Core earnings per diluted share increased 350% to $0.09 for the second quarter of 2016 compared with $0.02 for the second quarter of 2015, which excludes the impact of the transactions discussed above. Core earnings per diluted share is a non-GAAP financial measure, and a reconciliation of GAAP to non-GAAP financial measures is presented on page four.
Earnings per diluted share for the first six months of 2016 totaled $0.19 compared with $0.39 for the first six months of 2015. The Company's results for the first six months of 2016 included a gain on the sale of investment securities in February 2016 totaling $0.8 million, which added approximately $0.03 to earnings per diluted share for the first half of 2016. Excluding the earnings impact of this gain, as well as the previously discussed prior-year transactions, core earnings per diluted share tripled to $0.15 for the first six months of 2016 from $0.05 for the first six months of 2015.
Commenting on the Company's results, John K. Stephens, Jr., President and Chief Executive Officer, said, "We are pleased to report another period of strong growth for Atlantic Coast, which underscores the momentum we have built in our business, especially in our Florida markets. Our team is focused and we expect to continue to cement strong relationships across our markets and deliver solid loan production and attractive growth of our balance sheet. Coupled with our increased net interest margin and solid asset quality, we expect our loan growth to continue to translate into earnings growth. I believe we will continue to build an enviable banking platform, one that positions us to successfully pursue new and emerging business opportunities and better serve our customers. Considering our steadily improving financial fundamentals and the dedication of our team to create a premier bank for the region, we remain enthusiastic about the potential ahead for Atlantic Coast."
Other significant highlights of the second quarter and first half of 2016 include:
- Net interest income improved to $6.4 million and $12.5 million for the three and six months ended June 30, 2016, respectively, from $5.0 million and $9.4 million for the three and six months ended June 30, 2015, respectively. Additionally, net interest margin improved to 3.06% and 3.03% for the three and six months ended June 30, 2016, respectively, from 2.81% and 2.72% for the three and six months ended June 30, 2015, respectively.
- Total loans (including portfolio loans, loans held-for-sale, and warehouse loans held-for-investment) increased 16% to $758.6 million at June 30, 2016, from $654.2 million at December 31, 2015, and were up 30% from $583.3 million at June 30, 2015. Growth in total loans over the past year primarily has reflected originations in all lines of business, supplemented by selective loan acquisitions.
- Nonperforming assets, as a percentage of total assets, decreased to 0.67% at June 30, 2016, from 0.87% at December 31, 2015, and 0.97% at June 30, 2015.
- Total assets increased to $921.8 million at June 30, 2016, from $857.2 million at December 31, 2015, and $810.4 million at June 30, 2015, primarily due to an increase in loans, which was partially offset by a decrease in investment securities.
- The Bank's ratios of total risk-based capital to risk-weighted assets and Tier 1 (core) capital to adjusted total assets were 12.49% and 9.06%, respectively, at June 30, 2016, and each continued to exceed the levels – 10% and 5%, respectively – currently required for the Bank to be considered well-capitalized.
Tracy L. Keegan, Executive Vice President and Chief Financial Officer, added, "It is gratifying to note the continued strengthening of the Company's financial performance in the second quarter. Ongoing growth in our portfolio loans – up 38% on an annual basis at June 30, 2016, together with a significantly improved net interest margin – up 31 basis points over the past year, continues to drive impressive results and helped push core earnings to their highest quarterly level since the Company successfully recapitalized in December 2013. Moreover, continued efforts to manage our balance sheet, with an increased focus on commercial lending, have resulted in greater diversification of our loan portfolio and reduced exposure to 30-year fixed-rate loans. We believe we remain well positioned to extend the favorable trends of the past two years, as our loan, deposit and earnings growth strategies continue to gain traction."
| Bank Regulatory Capital | At | ||||||||||||||
|
Key Capital Measures |
June 30,
2016 |
March 31,
2016 |
Dec. 31,
2015 |
Sept. 30,
2015 |
June 30,
2015 |
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|
Total risk-based capital ratio (to risk-weighted assets) |
12.49% | 13.08% | 13.91% | 14.73% | 14.74% | ||||||||||
|
Common equity tier 1 (core) risk-based capital ratio (to risk-weighted assets) |
11.36% | 11.91% | 12.66% | 13.47% | 13.48% | ||||||||||
|
Tier 1 (core) risk-based capital ratio (to risk-weighted assets) |
11.36% | 11.91% | 12.66% | 13.47% | 13.48% | ||||||||||
|
Tier 1 (core) capital ratio (to adjusted total assets) |
9.06% | 9.20% | 9.49% | 9.55% | 9.69% | ||||||||||
The gradual decrease in capital ratios over the past year primarily reflected growth in the Bank's balance sheet, especially with respect to portfolio loans, which resulted in an increase in risk-weighted assets and adjusted total assets, partially offset by an increase in capital.
| Credit Quality | At | ||||||||||||||||||||||||
|
June 30, |
March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
|||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||
| Nonperforming loans | $ | 3.4 | $ | 4.5 | $ | 4.2 | $ | 4.0 | $ | 3.9 | |||||||||||||||
| Nonperforming loans to total portfolio loans | 0.51 | % | 0.69 | % | 0.69 | % | 0.74 | % | 0.82 | % | |||||||||||||||
| Other real estate owned | $ | 2.7 | $ | 3.2 | $ | 3.2 | $ | 3.5 | $ | 3.9 | |||||||||||||||
| Nonperforming assets | $ | 6.1 | $ | 7.7 | $ | 7.4 | $ | 7.5 | $ | 7.8 | |||||||||||||||
| Nonperforming assets to total assets | 0.67 | % | 0.86 | % | 0.87 | % | 0.92 | % | 0.97 | % | |||||||||||||||
|
Troubled debt restructurings performing for less than 12 months under terms of modification |
$ | 5.1 | $ | 4.5 | $ | 4.5 | $ | 5.2 | $ | 6.0 | |||||||||||||||
|
Total nonperforming assets and troubled debt restructurings performing for less than 12 months under terms of modification |
$ | 11.2 | $ | 12.2 | $ | 11.9 | $ | 12.7 | $ | 13.8 | |||||||||||||||
|
Troubled debt restructurings performing for more than 12 months under terms of modification |
$ | 29.8 | $ | 31.2 | $ | 30.5 | $ | 29.7 | $ | 28.9 | |||||||||||||||
Overall, the Company's credit quality remains strong, as the pace of loans reclassified to nonperforming and other real estate owned (OREO) has continued to slow. Nonperforming assets at June 30, 2016, were lower than those at December 31, 2015 and June 30, 2015, due to net reductions of OREO and a decrease in nonperforming loans.
|
Provision / Allowance for Loan Losses |
At and for the |
At and for the |
|||||||||||||||||||||||
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||
| Provision for portfolio loan losses | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.3 | $ | 0.4 | |||||||||||||||
| Allowance for portfolio loan losses | $ | 8.0 | $ | 7.8 | $ | 7.4 | $ | 8.0 | $ | 7.4 | |||||||||||||||
| Allowance for portfolio loan losses to total portfolio loans | 1.21 | % | 1.20 | % | 1.53 | % | 1.21 | % | 1.53 | % | |||||||||||||||
| Allowance for portfolio loan losses to nonperforming loans | 235.28 | % | 174.50 | % | 187.82 | % | 235.28 | % | 187.82 | % | |||||||||||||||
| Net charge-offs (recoveries) | $ | (0.1 | ) | $ | 0.1 | $ | (0.1 | ) | $ | 0.1 | $ | 0.1 | |||||||||||||
| Net charge-offs (recoveries) to average outstanding portfolio loans (annualized) | (0.03 | )% | 0.08 | % | (0.04 | )% | 0.02 | % | 0.05 | % | |||||||||||||||
The provision for portfolio loan losses was virtually unchanged in the second quarter of 2016 compared with that of the second quarter of 2015 and the first quarter of 2016, reflecting solid economic conditions in the Company's markets during the current year, which has led to continued low levels of net charge-offs over the past 12 months. The increase in the allowance for portfolio loan losses at June 30, 2016, from March 31, 2016 and June 30, 2015, was primarily attributable to loan growth, which reflected significant organic growth, supplemented by strategic loan purchases, partially offset by principal amortization and increased prepayments of one- to four-family residential mortgages and home equity loans. Management believes the allowance for portfolio loan losses as of June 30, 2016, is sufficient to absorb losses in portfolio loans as of the end of the period. Net recoveries were marginally lower in the second quarter of 2016 compared with those of the same quarter in 2015, reflecting a decrease in recoveries in commercial real estate loans, partially offset by a decrease in charge-offs in consumer loans, including both unsecured loans and manufactured home loans. Net charge-offs were marginally lower during the first six months of 2016 compared with those of the same period in 2015, reflecting an increase in recoveries in one- to four-family residential loans and home equity loans, partially offset by a decrease in recoveries in commercial real estate loans and an increase in charge-offs in consumer auto loans.
| Net Interest Income | Three Months Ended | Six Months Ended | |||||||||||||||||||||||
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||
| Net interest income | $ | 6.4 | $ | 6.1 | $ | 5.0 | $ | 12.5 | $ | 9.4 | |||||||||||||||
| Net interest margin | 3.06 | % | 2.99 | % | 2.81 | % | 3.03 | % | 2.72 | % | |||||||||||||||
| Yield on investment securities | 2.08 | % | 2.04 | % | 2.10 | % | 2.06 | % | 2.03 | % | |||||||||||||||
| Yield on loans | 4.38 | % | 4.46 | % | 4.87 | % | 4.42 | % | 4.90 | % | |||||||||||||||
| Total cost of funds | 1.04 | % | 1.08 | % | 1.40 | % | 1.06 | % | 1.48 | % | |||||||||||||||
| Average cost of deposits | 0.61 | % | 0.58 | % | 0.49 | % | 0.59 | % | 0.49 | % | |||||||||||||||
| Rates paid on borrowed funds | 2.01 | % | 2.37 | % | 3.42 | % | 2.18 | % | 3.70 | % | |||||||||||||||
The increase in net interest margin during the second quarter and first half of 2016 compared with net interest margin for the second quarter and first half of 2015 primarily reflected a decrease in rates paid on borrowed funds, as the Company benefited from the prepayment and restructuring of some of its high-cost wholesale debt late in the second quarter of 2015. Also, contributing to the increase in net interest margin was an increase in higher-margin interest-earning assets outstanding, as the Company continues to redeploy excess liquidity to grow its portfolio loans, loans held-for-sale, and warehouse loans held-for-investment.
| Noninterest Income / Noninterest Expense / Income Tax Expense | Three Months Ended | Six Months Ended | ||||||||||||||||||||
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||
| Noninterest income | $ | 2.5 | $ | 2.6 | $ | 1.7 | $ | 5.1 | $ | 3.4 | ||||||||||||
| Noninterest expense | $ | 6.6 | $ | 6.1 | $ | 11.3 | $ | 12.7 | $ | 16.8 | ||||||||||||
| Income tax expense (benefit) | $ | 0.8 | $ | 0.9 | $ | (10.4 | ) | $ | 1.7 | $ | (10.4 | ) | ||||||||||
The increase in noninterest income for the second quarter of 2016 compared with the second quarter of 2015 primarily reflected higher gains on the sale of both loans held-for-sale and portfolio loans. The increase in noninterest income for the first half of 2016 compared with the first half of 2015 primarily reflected higher gains on the sale of investment securities, as well as higher gains on the sale of both loans held-for-sale and portfolio loans. The decrease in noninterest expense during the second quarter and first half of 2016 compared with the second quarter and first half of 2015, respectively, primarily reflected penalties associated with the prepayment of some of the Company's high-cost wholesale debt during the second quarter of 2015, partially offset by increased incentive compensation costs associated with the Company's continuing growth strategies.
The increase in income tax expense for the second quarter and first half of 2016 compared with the second quarter and first half of 2015, respectively, reflected the aforementioned positive impact of the reversal of a valuation allowance against the Company's deferred tax asset during the second quarter of 2015.
Use of Non-GAAP Financial Measures
This press release includes the discussion of non-GAAP financial measures: core earnings and core earnings per diluted share. A "non-GAAP financial measure" is generally defined as a numerical measure of a company's historical or future financial performance, financial position, or cash flows that either excludes or includes amounts, or is subject to adjustments, so as to be different from the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (GAAP). Core earnings and core earnings per diluted share exclude the effects of certain transactions that occurred during the period, as detailed in the following reconciliation of these measures.
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Net income, as reported | $ | 1,336 | $ | 1,524 | $ | 5,625 | $ | 2,860 | $ | 6,021 | |||||||||||
| Less the gain on the sale of investment securities (1) | -- | (521 | ) | -- | (521 | ) | -- | ||||||||||||||
| Less the valuation allowance reversal | -- | -- | (8,476 | ) | -- | (8,476 | ) | ||||||||||||||
| Plus the prepayment penalties (2) | -- | -- | 3,217 | -- | 3,217 | ||||||||||||||||
| Adjusted net income (core earnings) | $ | 1,336 | $ | 1,003 | $ | 366 | $ | 2,339 | $ | 762 | |||||||||||
| Income per diluted share, as reported | $ | 0.09 | $ |
0.10 |
$ | 0.36 | $ | 0.19 | $ | 0.39 | |||||||||||
| Less the gain on the sale of investment securities | -- | (0.03 | ) | -- | (0.03 | ) | -- | ||||||||||||||
| Less the valuation allowance reversal | -- | -- | (0.55 | ) | -- | (0.55 | ) | ||||||||||||||
| Plus the prepayment penalties | -- | -- | 0.21 | -- | 0.21 | ||||||||||||||||
| Adjusted income per diluted share (core earnings per diluted share) (3) | $ | 0.09 | $ | 0.07 | $ | 0.02 | $ | 0.15 | $ | 0.05 | |||||||||||
|
_________________________ |
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|
(1) |
The gain on the sale of investment securities, which is included in noninterest income, totaled $828,000, and is shown net of a tax expense adjustment of $307,000. |
||||||||||||||||||||
|
(2) |
The prepayment penalties, which is included in noninterest expense, totaled $5,188,000, and is shown net of a tax expense adjustment of $1,971,000. |
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|
(3) |
May not foot due to rounding. |
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Core earnings and core earnings per diluted share should be viewed in addition to, and not in lieu of, net income and income per diluted share on a GAAP basis. Atlantic Coast management believes that the non-GAAP financial measures, when considered together with GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. Atlantic Coast management also believes that the non-GAAP financial measures enhance the ability of investors to analyze the Company's business trends and to understand the Company's performance. In addition, the Company may utilize non-GAAP financial measures as guides in forecasting, budgeting and long-term planning processes and to measure operating performance for some management compensation purposes. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
About the Company
Atlantic Coast Financial Corporation is the holding company for Atlantic Coast Bank, a federally chartered and insured stock savings bank. It is a community-oriented financial institution serving the Northeast Florida, Central Florida and Southeast Georgia markets. Investors may obtain additional information about Atlantic Coast Financial Corporation on the Internet at www.AtlanticCoastBank.net, under Investor Relations.
Forward-looking Statements
Statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions, and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally are identifiable by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," "plans," "intends," "projects," "targets," "estimates," "preliminary," or "anticipates" or the negative thereof or comparable terminology, or by discussion of strategy or goals or other future events, circumstances or effects. Moreover, forward-looking statements in this release include, but are not limited to, those relating to: our ability to build strong relationships across our markets; our ability to continue our current level of loan production and balance sheet growth; our ability to generate new business opportunities; our ability better serve our customers; our ability to execute on our loan growth, deposit growth and earnings growth strategies; and the allowance for portfolio loan losses being sufficient to absorb losses in respect of portfolio loans. The Company's consolidated financial results and the forward-looking statements could be affected by many factors, including but not limited to: general economic trends and changes in interest rates; increased competition; changes in demand for financial services; the state of the banking industry generally; uncertainties associated with newly developed or acquired operations; market disruptions; and cyber-security risks. Further information relating to factors that may impact the Company's results and forward-looking statements are disclosed in the Company's filings with the Securities and Exchange Commission. In particular, please refer to "Item 1A. Risk Factors" beginning on page 39 of the Company's Annual Report on Form 10-K for the year ended December 31, 2015. The forward-looking statements contained in this release are made as of the date of this release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
|
ATLANTIC COAST FINANCIAL CORPORATION Statements of Operations (Unaudited) (In thousands, except per share amounts) |
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| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
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| Interest and dividend income: | |||||||||||||||||||||||
| Loans, including fees | $ | 7,938 | $ | 7,500 | $ | 6,647 | $ | 15,438 | $ | 12,762 | |||||||||||||
| Securities and interest-earning deposits in other financial institutions | 568 | 696 | 775 | 1,264 | 1,531 | ||||||||||||||||||
| Total interest and dividend income | 8,506 | 8,196 | 7,422 | 16,702 | 14,293 | ||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||
| Deposits | 847 | 797 | 578 | 1,644 | 1,128 | ||||||||||||||||||
| Securities sold under agreements to repurchase | -- | 1 | 722 | 1 | 1,540 | ||||||||||||||||||
| Federal Home Loan Bank advances | 1,254 | 1,308 | 1,137 | 2,562 | 2,220 | ||||||||||||||||||
| Other borrowings | 1 | -- | -- | 1 | -- | ||||||||||||||||||
| Total interest expense | 2,102 | 2,106 | 2,437 | 4,208 | 4,888 | ||||||||||||||||||
| Net interest income | 6,404 | 6,090 | 4,985 | 12,494 | 9,405 | ||||||||||||||||||
| Provision for portfolio loan losses | 199 | 150 | 190 | 349 | 387 | ||||||||||||||||||
|
Net interest income after provision for portfolio loan losses |
6,205 | 5,940 | 4,795 | 12,145 | 9,018 | ||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||
| Service charges and fees | 563 | 633 | 660 | 1,196 | 1,296 | ||||||||||||||||||
| Gain on sale of loans held-for-sale | 949 | 414 | 350 | 1,363 | 849 | ||||||||||||||||||
| Gain on sale of portfolio loans | 218 | -- | -- | 218 | -- | ||||||||||||||||||
| Gain (loss) on sale of securities available-for-sale | -- | 828 | -- | 828 | (9 | ) | |||||||||||||||||
| Bank owned life insurance earnings | 115 | 117 | 120 | 232 | 238 | ||||||||||||||||||
| Interchange fees | 349 | 358 | 408 | 707 | 803 | ||||||||||||||||||
| Other | 355 | 211 | 138 | 566 | 261 | ||||||||||||||||||
| Total noninterest income | 2,549 | 2,561 | 1,676 | 5,110 | 3,438 | ||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||
| Compensation and benefits | 3,512 | 3,458 | 3,133 | 6,970 | 6,049 | ||||||||||||||||||
| Occupancy and equipment | 603 | 602 | 538 | 1,205 | 1,052 | ||||||||||||||||||
| FDIC insurance premiums | 166 | 172 | 154 | 338 | 349 | ||||||||||||||||||
| Foreclosed assets, net | 254 | -- | 102 | 254 | 102 | ||||||||||||||||||
| Data processing | 513 | 456 | 472 | 969 | 867 | ||||||||||||||||||
| Outside professional services | 539 | 471 | 554 | 1,010 | 1,086 | ||||||||||||||||||
| Collection expense and repossessed asset losses | 117 | 145 | 105 | 262 | 224 | ||||||||||||||||||
| Securities sold under agreements to repurchase prepayment penalties | -- | -- | 5,188 | -- | 5,188 | ||||||||||||||||||
| Other | 926 | 774 | 1,040 | 1,700 | 1,910 | ||||||||||||||||||
| Total noninterest expense | 6,630 | 6,078 | 11,286 | 12,708 | 16,827 | ||||||||||||||||||
| Income (loss) before income tax expense | 2,124 | 2,423 | (4,815 | ) | 4,547 | (4,371 | ) | ||||||||||||||||
| Income tax expense (benefit) | 788 | 899 | (10,440 | ) | 1,687 | (10,392 | ) | ||||||||||||||||
| Net income | $ | 1,336 | $ | 1,524 | $ | 5,625 | $ | 2,860 | $ | 6,021 | |||||||||||||
| Net income per basic and diluted share | $ | 0.09 | $ | 0.10 | $ | 0.36 | $ | 0.19 | $ | 0.39 | |||||||||||||
| Basic and diluted weighted average shares outstanding | 15,418 | 15,415 | 15,398 | 15,416 | 15,398 | ||||||||||||||||||
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ATLANTIC COAST FINANCIAL CORPORATION Balance Sheets (Unaudited) (Dollars in thousands) |
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|
|
June 30, |
Dec. 31, |
June 30, |
|||||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from financial institutions | $ | 3,494 | $ | 6,108 | $ | 17,379 | ||||||||||
| Short-term interest-earning deposits | 20,001 | 17,473 | 21,166 | |||||||||||||
| Total cash and cash equivalents | 23,495 | 23,581 | 38,545 | |||||||||||||
| Investment securities: | ||||||||||||||||
| Securities available-for-sale | 78,677 | 120,110 | 110,285 | |||||||||||||
| Securities held-to-maturity | -- | -- | 17,054 | |||||||||||||
| Total investment securities | 78,677 | 120,110 | 127,339 | |||||||||||||
| Portfolio loans, net of allowance of $8,030, $7,745 and $7,400, respectively | 657,625 | 603,507 | 475,455 | |||||||||||||
| Other loans: | ||||||||||||||||
| Loans held-for-sale | 10,135 | 6,591 | 12,685 | |||||||||||||
| Warehouse loans held-for-investment | 90,860 | 44,074 | 95,205 | |||||||||||||
| Total other loans | 100,995 | 50,665 | 107,890 | |||||||||||||
| Federal Home Loan Bank stock, at cost | 11,888 | 9,517 | 9,999 | |||||||||||||
| Land, premises and equipment, net | 15,068 | 15,472 | 14,746 | |||||||||||||
| Bank owned life insurance | 17,302 | 17,070 | 16,827 | |||||||||||||
| Other real estate owned | 2,721 | 3,232 | 3,886 | |||||||||||||
| Accrued interest receivable | 2,261 | 2,107 | 1,959 | |||||||||||||
| Deferred tax assets, net | 8,622 | 9,107 | 10,539 | |||||||||||||
| Other assets | 3,157 | 2,830 | 3,242 | |||||||||||||
| Total assets | $ | 921,811 | $ | 857,198 | $ | 810,427 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Noninterest-bearing demand | $ | 54,653 | $ | 47,208 | $ | 47,907 | ||||||||||
| Interest-bearing demand | 101,410 | 105,159 | 64,027 | |||||||||||||
| Savings and money markets | 188,187 | 171,664 | 178,300 | |||||||||||||
| Time | 226,228 | 231,790 | 210,861 | |||||||||||||
| Total deposits | 570,478 | 555,821 | 501,095 | |||||||||||||
| Securities sold under agreements to purchase | -- | 9,991 | 10,000 | |||||||||||||
| Federal Home Loan Bank advances | 261,592 | 207,543 | 217,371 | |||||||||||||
| Accrued expenses and other liabilities | 5,295 | 3,105 | 3,881 | |||||||||||||
| Total liabilities | 837,365 | 776,460 | 732,347 | |||||||||||||
| Common stock, additional paid-in capital, retained deficit, and other equity | 84,965 | 82,070 | 80,379 | |||||||||||||
| Accumulated other comprehensive loss | (519 | ) | (1,332 | ) | (2,299 | ) | ||||||||||
| Total stockholders' equity | 84,446 | 80,738 | 78,080 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 921,811 | $ | 857,198 | $ | 810,427 | ||||||||||
|
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ATLANTIC COAST FINANCIAL CORPORATION Selected Consolidated Financial Ratios and Other Data (Unaudited) (Dollars in thousands) |
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|
At and for the |
At and for the |
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| Interest rate | |||||||||||||||||
| Net interest spread | 2.95 | % | 2.68 | % | 2.91 | % | 2.52 | % | |||||||||
| Net interest margin | 3.06 | % | 2.81 | % | 3.03 | % | 2.72 | % | |||||||||
| Average balances | |||||||||||||||||
| Portfolio loans receivable, net | $ | 654,289 | $ | 473,693 | $ | 639,072 | $ | 461,247 | |||||||||
| Total interest-earning assets | 836,417 | 709,441 | 824,941 | 692,685 | |||||||||||||
| Total assets | 893,272 | 766,316 | 876,758 | 738,368 | |||||||||||||
| Deposits | 557,100 | 470,945 | 555,539 | 457,833 | |||||||||||||
| Total interest-bearing liabilities | 753,255 | 639,961 | 738,952 | 613,902 | |||||||||||||
| Total liabilities | 809,206 | 691,522 | 793,426 | 663,954 | |||||||||||||
| Stockholders' equity | 84,066 | 74,794 | 83,332 | 74,414 | |||||||||||||
| Performance ratios (annualized) | |||||||||||||||||
| Return on average total assets | 0.60 | % | 2.94 | % | 0.65 | % | 1.63 | % | |||||||||
| Return on average stockholders' equity | 6.36 | % | 30.08 | % | 6.86 | % | 16.18 | % | |||||||||
| Ratio of operating expenses to average total assets | 2.97 | % | 5.89 | % | 2.90 | % | 4.56 | % | |||||||||
| Credit and liquidity ratios | |||||||||||||||||
| Nonperforming loans | $ | 3,413 | $ | 3,940 | $ | 3,413 | $ | 3,940 | |||||||||
| Foreclosed assets | 2,721 | 3,886 | 2,721 | 3,886 | |||||||||||||
| Impaired loans | 37,559 | 38,788 | 37,559 | 38,788 | |||||||||||||
| Nonperforming assets to total assets | 0.67 | % | 0.97 | % | 0.67 | % | 0.97 | % | |||||||||
| Nonperforming loans to total portfolio loans | 0.51 | % | 0.82 | % | 0.51 | % | 0.82 | % | |||||||||
| Allowance for loan losses to nonperforming loans | 235.28 | % | 187.82 | % | 235.28 | % | 187.82 | % | |||||||||
| Allowance for loan losses to total portfolio loans | 1.21 | % | 1.53 | % | 1.21 | % | 1.53 | % | |||||||||
| Net charge-offs to average outstanding portfolio loans (annualized) | (0.03 | )% | (0.04 | )% | 0.02 | % | 0.05 | % | |||||||||
| Ratio of gross portfolio loans to total deposits | 116.68 | % | 96.36 | % | 116.68 | % | 96.36 | % | |||||||||
| Capital ratios | |||||||||||||||||
| Tangible stockholders' equity to tangible assets (1) | 9.16 | % | 9.63 | % | 9.16 | % | 9.63 | % | |||||||||
| Average stockholders' equity to average total assets | 9.41 | % | 9.76 | % | 9.50 | % | 10.08 | % | |||||||||
| Other Data | |||||||||||||||||
| Tangible book value per share (1) | $ | 5.44 | $ | 5.03 | $ | 5.44 | $ | 5.03 | |||||||||
| Stock price per share | 5.98 | 4.45 | 5.98 | 4.45 | |||||||||||||
| Stock price per share to tangible book value per share (1) | 109.83 | % | 88.39 | % | 109.83 | % | 88.39 | % | |||||||||
|
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|
(1) |
Non-GAAP financial measure. Because the Company does not currently have any intangible assets, tangible stockholders' equity is equal to stockholders' equity, tangible assets is equal to assets, and tangible book value is equal to book value. Accordingly, no reconciliations are required for these measures. |
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View source version on businesswire.com: http://www.businesswire.com/news/home/20160727006234/en/
Atlantic Coast Financial Corporation
Tracy L. Keegan, 904-998-5501
Executive
Vice President and
Chief Financial Officer
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