Attached files
| file | filename |
|---|---|
| 8-K - ATLANTIC COAST FEDERAL CORP | v169198_8k.htm |
| EX-10.3 - ATLANTIC COAST FEDERAL CORP | v169198_ex10-3.htm |
| EX-10.1 - ATLANTIC COAST FEDERAL CORP | v169198_ex10-1.htm |
| EX-10.2 - ATLANTIC COAST FEDERAL CORP | v169198_ex10-2.htm |
| EX-10.5 - ATLANTIC COAST FEDERAL CORP | v169198_ex10-5.htm |
| EX-10.6 - ATLANTIC COAST FEDERAL CORP | v169198_ex10-6.htm |
| EX-10.7 - ATLANTIC COAST FEDERAL CORP | v169198_ex10-7.htm |
| EX-10.4 - ATLANTIC COAST FEDERAL CORP | v169198_ex10-4.htm |
For
additional information contact:
Patrick
J. Watson
Corporate
Communications, Inc.
(615)
254-3376
ATLANTIC
COAST FEDERAL CORPORATION ANNOUNCES
CAPITAL-STRENGTHENING
MEASURES
CHANGES
TO SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS
AND
CAPITAL CONTRIBUTION TO ATLANTIC COAST BANK
WILL
ADD $4.2 MILLION TO THE BANK'S CAPITAL
WAYCROSS,
Ga. (December 17, 2009) – Atlantic Coast Federal Corporation (NASDAQ:ACFC), the
holding company for Atlantic Coast Bank, today announced two measures that
together will add $4.2 million to the Bank's capital. Deemed
well-capitalized under regulatory guidelines as of September 30, 2009, these
steps will further strengthen the Bank's capital level. At the end of
the third quarter, the Bank reported Tier 1 and Total Risk-based Capital ratios
of 6.4% and 11.6%, respectively; had these two transactions been completed as of
that date, the ratios would have been 6.8% and 12.4%, respectively.
The first
measure relates to a vote by the Company's Board of Directors to rescind a
decision earlier this year to terminate the Company's Supplemental Executive
Retirement Plans (SERP) for directors, executive officers and other senior
officers in a cost-cutting move. With the termination of those plans,
the Company would have been required to distribute the accrued liabilities
totaling approximately $3.8 million to SERP participants as early as May 2010 if
certain financial conditions existed. However, the Company has
obtained the consent of each SERP participant to release the Company from
liabilities for vested benefits under the plans (except for those of a deceased
former officer), which will enable the Company to reverse previous SERP costs
totaling approximately $3.0 million pre-tax in the fourth quarter of
2009. In exchange for the release of the aforementioned liabilities,
the Company has awarded new SERP benefits to the same participants, the vesting
and value of which is contingent upon the successful completion of a second-step
conversion at some future date or the occurrence of certain other
events. Accordingly, no expense for the reinstated SERPs will be
recorded until such time as the Company is able to determine the likelihood and
value of the reorganization and conversion, through which the Company's shares
will become 100% publicly held or the occurrence of certain other
events.
The
Company also announced that it is contributing $2.2 million to the capital of
Atlantic Coast Bank, using proceeds of a loan from another financial
institution.
-MORE-
Atlantic
Coast Federal Corporation
505
Haines Avenue Waycross, Georgia
31501
www.AtlanticCoastBank.net
ACFC
Announces Capital-Strengthening Measures
Page
2
December
17, 2009
Commenting
on the announcements, Robert J. Larison, Jr., President and Chief Executive,
said, "These actions and the support of the directors and management of Atlantic
Coast Federal Corporation demonstrate our personal commitment and resolve to
strengthen the Bank's capital position, even as more traditional means of doing
so remain elusive and challenging due to current economic and stock-market
conditions. This additional capital will further fortify the Bank's
already strong capital ratios to help blunt the lagging effects of this
recessionary period and, equally important, help ensure that we remain
positioned to take advantage of opportunities to invest in our local banking
markets in the future.
"The
cooperation of our Board of Directors and senior management to recast our SERP
also underscores the positive outlook we share for the long-term prospects of
the Bank and our Company," Larison continued. "We believe it is both
appropriate and equitable to give them an opportunity to earn back the benefits
they are sacrificing now, providing returns when and if the Company successfully
completes a second-step conversion and thereby aligning their benefits with the
interests of our stockholders, which also would be advanced by our transition to
a fully public company."
Atlantic
Coast Federal Corporation is the holding company for Atlantic Coast Bank, a
federally chartered and insured stock savings association organized in 1939 as a
credit union to serve the employees of the Atlantic Coast Line
Railroad. Today, Atlantic Coast Bank is a community-oriented
financial institution serving southeastern Georgia and northeastern Florida
through 13 locations, including a focus on the Jacksonville metropolitan
area. Investors may obtain additional information about Atlantic
Coast Federal Corporation on the Internet at www.AtlanticCoastBank.net,
under the Investor Information section.
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.
-END-