ATLANTIC
COAST FEDERAL CORPORATION
|
||
(Exact
name of registrant as specified in its charter)
|
||
FEDERAL
|
59-3764686
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification Number)
|
|
505
Haines Avenue
Waycross,
Georgia
|
31501
|
|
(Address
of principal Executive Offices)
|
(Zip
Code)
|
Class
|
Outstanding
at November 5, 2007
|
Common
Stock, $0.01 Par Value
|
13,675,825
shares
|
Page Number
|
||
Item
1.
|
Financial
Statements
|
2
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
13
|
Item
3.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
28
|
Item
4.
|
Controls
and Procedures
|
30
|
PART
II. OTHER INFORMATION
|
||
Item
1.
|
Legal
Proceedings
|
30
|
Item
1A
|
Risk
Factors
|
30
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
30
|
Item
3.
|
Defaults
upon Senior Securities
|
31
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
31
|
Item
5.
|
Other
Information
|
31
|
Item
6.
|
Exhibits
|
31
|
Form
10-Q
|
Signature
Page
|
32
|
Section
302 Certification of CEO
|
33
|
|
Ex-31.2
|
Section
302 Certification of CFO
|
34
|
Ex-32
|
Section
906 Certification of CEO and CFO
|
35
|
2007
|
2006
|
||||||
ASSETS
|
|||||||
Cash
and due from financial institutions
|
$
|
7,556
|
$
|
10,571
|
|||
Short-term
interest earning deposits
|
42,347
|
30,486
|
|||||
Total
cash and cash equivalents
|
49,903
|
41,057
|
|||||
Other
interest earning deposits in other financial institutions
|
-
|
1,200
|
|||||
Securities
available for sale
|
133,681
|
99,231
|
|||||
Real
estate mortgages held for sale
|
1,228
|
4,365
|
|||||
Loans,
net of allowance for loan losses of $5,802 at September 30, 2007
and
$4,705 at December 31, 2006
|
669,225
|
639,517
|
|||||
Federal
Home Loan Bank stock
|
8,528
|
7,948
|
|||||
Accrued
interest receivable
|
3,862
|
3,499
|
|||||
Land,
premises and equipment
|
17,006
|
17,610
|
|||||
Bank
owned life insurance
|
22,005
|
21,366
|
|||||
Other
real estate owned
|
1,643
|
286
|
|||||
Goodwill
|
2,661
|
2,661
|
|||||
Other
assets
|
6,006
|
4,339
|
|||||
Total
assets
|
$
|
915,748
|
$
|
843,079
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Deposits
|
|||||||
Non-interest-bearing
demand
|
$
|
41,468
|
$
|
38,301
|
|||
Interest-bearing
demand
|
49,633
|
52,895
|
|||||
Savings
and money market
|
209,286
|
158,229
|
|||||
Time
|
297,626
|
323,627
|
|||||
Total
deposits
|
598,013
|
573,052
|
|||||
Securities
sold under agreements to repurchase
|
63,500
|
29,000
|
|||||
Federal
Home Loan Bank advances
|
156,000
|
144,000
|
|||||
Accrued
expenses and other liabilities
|
7,442
|
5,940
|
|||||
Total
liabilities
|
824,955
|
751,992
|
|||||
Commitments
and contingencies
|
-
|
-
|
|||||
Preferred
stock: $0.01 par value; 2,000,000 shares authorized
|
|||||||
none
issued
|
-
|
-
|
|||||
Common
stock: $0.01 par value; 18,000,000 shares authorized, shares issued
of
14,813,469 at September 30, 2007 and December 31, 2006; shares outstanding
of 13,675,825 at September 30, 2007 and 13,784,330 at December 31,
2006
|
148
|
148
|
|||||
Additional
paid in capital
|
58,806
|
57,708
|
|||||
Unearned
employee stock ownership plan (ESOP) shares of 290,950 at September
30,
2007 and 325,864 at December 31, 2006
|
(2,910
|
)
|
(3,259
|
)
|
|||
Retained
earnings
|
52,978
|
52,711
|
|||||
Accumulated
other comprehensive loss
|
(270
|
)
|
(204
|
)
|
|||
Treasury
stock, at cost, 1,137,644 shares at September 30, 2007 and
1,029,139 at December 31, 2006
|
(17,959
|
)
|
(16,017
|
)
|
|||
Total
stockholders' equity
|
90,793
|
91,087
|
|||||
Total
liabilities and stockholders' equity
|
$
|
915,748
|
$
|
843,079
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||
Interest
and dividend income
|
|||||||||||||
Loans,
including fees
|
$
|
11,927
|
$
|
10,612
|
$
|
34,459
|
$
|
30,015
|
|||||
Securities
and interest-earning deposits in other financial
institutions
|
2,336
|
1,394
|
6,826
|
3,662
|
|||||||||
Total
interest and dividend income
|
14,263
|
12,006
|
41,285
|
33,677
|
|||||||||
Interest
expense
|
|||||||||||||
Deposits
|
6,129
|
4,927
|
17,944
|
13,028
|
|||||||||
Federal
Home Loan Bank advances
|
1,671
|
1,382
|
4,879
|
4,099
|
|||||||||
Securities
sold under agreements to repurchase
|
733
|
139
|
1,841
|
333
|
|||||||||
Total
interest expense
|
8,533
|
6,448
|
24,664
|
17,460
|
|||||||||
Net
interest income
|
5,730
|
5,558
|
16,621
|
16,217
|
|||||||||
Provision
for (recovery of) loan losses
|
438
|
(98
|
)
|
1,243
|
183
|
||||||||
Net
interest income after provision for loan losses
|
5,292
|
5,656
|
15,378
|
16,034
|
|||||||||
Noninterest
income
|
|||||||||||||
Service
charges and fees
|
1,326
|
1,516
|
3,866
|
4,360
|
|||||||||
Gain
on sale of real estate mortgages held for sale
|
11
|
35
|
26
|
51
|
|||||||||
Loss
on sale of securities available for sale
|
-
|
-
|
(46
|
)
|
(165
|
)
|
|||||||
Loss
on sale of foreclosed assets
|
(116
|
)
|
(5
|
)
|
(114
|
)
|
(10
|
)
|
|||||
Commission
income
|
85
|
90
|
222
|
239
|
|||||||||
Interchange
fees
|
229
|
193
|
672
|
588
|
|||||||||
Bank
owned life insurance earnings
|
211
|
214
|
639
|
629
|
|||||||||
Other
|
(232
|
)
|
(80
|
)
|
137
|
348
|
|||||||
1,514
|
1,963
|
5,402
|
6,040
|
||||||||||
Noninterest
expense
|
|||||||||||||
Compensation
and benefits
|
3,147
|
2,805
|
9,317
|
8,049
|
|||||||||
Occupancy
and equipment
|
595
|
612
|
1,787
|
1,609
|
|||||||||
Data
processing
|
234
|
329
|
838
|
1,134
|
|||||||||
Advertising
|
123
|
201
|
420
|
631
|
|||||||||
Outside
professional services
|
456
|
367
|
1,828
|
1,317
|
|||||||||
Interchange
charges
|
104
|
92
|
297
|
420
|
|||||||||
Collection
expense and repossessed asset losses
|
59
|
55
|
192
|
218
|
|||||||||
Telephone
|
122
|
116
|
348
|
359
|
|||||||||
Other
|
830
|
826
|
2,562
|
2,154
|
|||||||||
5,670
|
5,403
|
17,589
|
15,891
|
||||||||||
Income
before income tax expense
|
1,136
|
2,216
|
3,191
|
6,183
|
|||||||||
Income
tax expense
|
347
|
698
|
982
|
1,965
|
|||||||||
Net
income
|
$
|
789
|
$
|
1,518
|
$
|
2,209
|
$
|
4,218
|
|||||
|
|||||||||||||
Earnings
per common share:
|
|||||||||||||
Basic
|
$
|
0.06
|
$
|
0.11
|
$
|
0.17
|
$
|
0.31
|
|||||
Diluted
|
$
|
0.06
|
$
|
0.11
|
$
|
0.17
|
$
|
0.31
|
|||||
Dividends
declared per common share
|
$
|
0.15
|
$
|
0.11
|
$
|
0.42
|
$
|
0.30
|
|
|
|
|
|
|
|
|
ACCUMULATED
|
|
|
|
|
|
|||||||||
|
|
|
|
ADDITIONAL
|
|
UNEARNED
|
|
|
|
OTHER
|
|
|
|
|
|
|||||||
|
|
COMMON
|
|
PAID
IN
|
|
ESOP
|
|
RETAINED
|
|
COMPREHENSIVE
|
|
TREASURY
|
|
TOTAL
|
|
|||||||
|
|
STOCK
|
|
CAPITAL
|
|
STOCK
|
|
EARNINGS
|
|
INCOME
(LOSS)
|
|
STOCK
|
|
EQUITY
|
||||||||
For
the nine months ended September 30, 2007
|
||||||||||||||||||||||
Balance
at January 1, 2007
|
$
|
148
|
$
|
57,708
|
$
|
(3,259
|
)
|
$
|
52,711
|
$
|
(204
|
)
|
$
|
(16,017
|
)
|
$
|
91,087
|
|||||
ESOP
shares earned, 34,914 shares
|
-
|
245
|
349
|
-
|
-
|
-
|
594
|
|||||||||||||||
Stock
options exercised
|
-
|
(18
|
)
|
-
|
-
|
-
|
65
|
47
|
||||||||||||||
Stock
awards
|
-
|
(28
|
)
|
-
|
-
|
-
|
116
|
88
|
||||||||||||||
Management
restricted stock expense
|
-
|
510
|
-
|
-
|
-
|
-
|
510
|
|||||||||||||||
Stock
options expense
|
-
|
250
|
-
|
-
|
-
|
-
|
250
|
|||||||||||||||
Dividends
declared ( $0.42 per share)
|
-
|
-
|
-
|
(1,942
|
)
|
-
|
-
|
(1,942
|
)
|
|||||||||||||
Shares
relinquished
|
-
|
139
|
-
|
-
|
-
|
(155
|
)
|
(16
|
)
|
|||||||||||||
Treasury
stock purchased at cost, 105,838 shares
|
-
|
-
|
-
|
-
|
-
|
(1,968
|
)
|
(1,968
|
)
|
|||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
2,209
|
-
|
-
|
2,209
|
|||||||||||||||
Other
comprehensive income (loss)
|
-
|
-
|
-
|
-
|
(66
|
)
|
-
|
(66
|
)
|
|||||||||||||
Total
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
2,143
|
|||||||||||||||
Balance
at September 30, 2007
|
$
|
148
|
$
|
58,806
|
$
|
(2,910
|
)
|
$
|
52,978
|
$
|
(270
|
)
|
$
|
(17,959
|
)
|
$
|
90,793
|
|||||
For
the nine months ended September 30, 2006
|
||||||||||||||||||||||
Balance
at January 1, 2006
|
$
|
148
|
$
|
56,876
|
$
|
(3,724
|
)
|
$
|
49,630
|
$
|
(408
|
)
|
($9,603
|
)
|
$
|
92,919
|
||||||
ESOP
shares earned, 34,914 shares
|
-
|
191
|
349
|
-
|
-
|
-
|
540
|
|||||||||||||||
Management
restricted stock expense
|
-
|
444
|
-
|
-
|
-
|
-
|
444
|
|||||||||||||||
Stock
options expense
|
-
|
229
|
-
|
-
|
-
|
-
|
229
|
|||||||||||||||
Dividend
declared ($0.30 per share)
|
-
|
-
|
-
|
(1,481
|
)
|
-
|
-
|
(1,481
|
)
|
|||||||||||||
Treasury
stock purchased at cost, 335,782 shares
|
-
|
-
|
-
|
-
|
-
|
(5,899
|
)
|
(5,899
|
)
|
|||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
4,218
|
-
|
-
|
4,218
|
|||||||||||||||
Other
comprehensive income (loss)
|
-
|
-
|
-
|
-
|
32
|
-
|
32
|
|||||||||||||||
Total
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
4,250
|
|||||||||||||||
Balance
at September 30, 2006
|
$
|
148
|
$
|
57,740
|
$
|
(3,375
|
)
|
$
|
52,367
|
$
|
(376
|
)
|
$
|
(15,502
|
)
|
$
|
91,002
|
Nine months ended September 30,
|
|||||||
2007
|
2008
|
||||||
Cash
flows from operating activities
|
$
|
2,209
|
$
|
4,218
|
|||
Net
income
|
|||||||
Adustments
to reconcile net income to net cash from operating
activities:
|
|||||||
Provision
for loan losses
|
1,243
|
183
|
|||||
Gain
on sale of real estate mortgages held for sale
|
(26
|
)
|
(51
|
)
|
|||
Loan
originated for sale
|
(67,981
|
)
|
(14,948
|
)
|
|||
Proceeds
from loan sales
|
71,144
|
9,637
|
|||||
Gain
on sale of other real estate owned
|
113
|
10
|
|||||
Loss
on sale of securities available for sale
|
46
|
165
|
|||||
Loss
on disposal of equipment
|
114
|
85
|
|||||
ESOP
compensation expense
|
594
|
540
|
|||||
Share-based
compensation expense
|
760
|
673
|
|||||
Net
depreciation and amortization
|
1,466
|
1,400
|
|||||
Net
change in accrued interest receivable
|
(364
|
)
|
(742
|
)
|
|||
Increase
in cash surrender value of blank owned life insurance
|
(639
|
)
|
(629
|
)
|
|||
Net
change in other assets
|
(1,631
|
)
|
185
|
||||
Net
change in accrued expenses and other liabilities
|
1,503
|
(644
|
)
|
||||
Net
cash from operating activities
|
8,551
|
82
|
|||||
Cash
flows from investing activities
|
|||||||
Proceeds
from maturities and payments of securites available for
sale
|
13,289
|
11,750
|
|||||
Proceeds
from the sales of securities available for sale
|
14,619
|
15,934
|
|||||
Purchase
of securities available for sale
|
(62,512
|
)
|
(33,801
|
)
|
|||
Loans
purchased
|
(14,027
|
)
|
(22,711
|
)
|
|||
Net
change in loans
|
(19,113
|
)
|
(21,542
|
)
|
|||
Expenditures
on premises and equipment
|
(584
|
)
|
(2,449
|
)
|
|||
Proceeds
from the sale of other real estate owned
|
333
|
513
|
|||||
Net
(purchase) redemption of FHLB stock
|
(580
|
)
|
(648
|
)
|
|||
Net
change in other investments
|
1,200
|
300
|
|||||
Net
cash from investing activities
|
(67,375
|
)
|
(52,654
|
)
|
Nine
months ended September 30,
|
|||||||
2007
|
2006
|
||||||
Cash
flows from financing activities
|
|||||||
Net
increase in deposits
|
$
|
24,961
|
$
|
29,728
|
|||
FHLB
advances
|
50,000
|
20,000
|
|||||
Proceeds
from sale of securities under agreements to
repurchase
|
34,500
|
12,000
|
|||||
Repayment
of FHLB advances
|
(38,000
|
)
|
(10,000
|
)
|
|||
Proceeds
from exercise of stock options
|
135
|
-
|
|||||
Shares
relinquished
|
(16
|
)
|
-
|
||||
Treasury
stock repurchased
|
(1,968
|
)
|
(5,899
|
)
|
|||
Dividends
paid
|
(1,815
|
)
|
(1,377
|
)
|
|||
Net
cash from financing activities
|
67,797
|
44,452
|
|||||
Net
change in cash and cash equivalents
|
8,846
|
(8,120
|
)
|
||||
Cash
and equivalents beginning of period
|
41,057
|
37,959
|
|||||
Cash
and equivalents at end of period
|
$
|
49,903
|
$
|
29,839
|
|||
Supplemental
information:
|
|||||||
Interest
paid
|
$
|
24,185
|
$
|
17,209
|
|||
Income
taxes paid
|
1,746
|
3,151
|
|||||
Supplemental
noncash disclosures:
|
|||||||
Loans
transferred to other real estate
|
$
|
1,804
|
$
|
401
|
(Dollars in Thousands)
|
||||
Average
daily balance for the nine month period
|
$
|
55,887
|
||
Average
interest rate for the nine month period
|
4.51
|
%
|
||
$
|
63,500
|
|||
Weighted
average interest rate at period end
|
4.52
|
%
|
For
the three months
|
For
the nine months
|
||||||||||||
ended
September 30,
|
ended
September 30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
(Dollars
in Thousands, except share
information)
|
|||||||||||||
Basic
|
|||||||||||||
Net
income
|
$
|
789
|
$
|
1,518
|
$
|
2,209
|
$
|
4,218
|
|||||
Weighted
average common shares outstanding
|
13,673,347
|
14,057,845
|
13,700,331
|
14,114,967
|
|||||||||
Less:
Average unallocated ESOP shares
|
(325,864
|
)
|
(372,416
|
)
|
(325,864
|
)
|
(372,416
|
)
|
|||||
Average
unvested restricted stock awards
|
(179,128 | ) |
(214,818
|
)
|
(210,552
|
)
|
(245,529
|
)
|
|||||
Average
Shares
|
13,168,355
|
13,470,611
|
13,163,915
|
13,497,022
|
|||||||||
Basic
earnings per common share
|
$
|
0.06
|
$
|
0.11
|
$
|
0.17
|
$
|
0.31
|
|||||
Diluted
|
|||||||||||||
Net
Income
|
$
|
789
|
$
|
1,518
|
$
|
2,209
|
$
|
4,218
|
|||||
Weighted
average common shares outstanding per common share
|
13,168,355
|
13,470,611
|
13,163,915
|
13,497,022
|
|||||||||
Add:Dilutive
effects of assumed exercise of stock options
|
17,751
|
51,445
|
5,917
|
||||||||||
Dilutive
effects of full vesting of stock awards
|
86,449 |
67,136
|
70,396
|
76,069
|
|||||||||
Average
shares and dilutive potential common shares
|
13,254,804 |
13,555,498
|
13,285,756
|
13,579,008
|
|||||||||
Diluted
earnings per common share
|
$
|
0.06
|
$
|
0.11
|
$
|
0.17
|
$
|
0.31
|
Three
months ended September 30,
|
Nine
months ended September 30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Unrealized
holding gains (losses) on securities available for sale
|
$
|
1,775
|
$
|
603
|
$
|
(54
|
)
|
$
|
219
|
||||
Less
reclassification adjustments for gains (losses) recognized in
income
|
-
|
-
|
(46
|
)
|
(165
|
)
|
|||||||
Net
unrealized gains (losses)
|
1,775
|
603
|
(100
|
)
|
54
|
||||||||
Tax
effect
|
(666
|
)
|
(220
|
)
|
34
|
(22
|
)
|
||||||
Net-of-tax
amount
|
1,109
|
383
|
(66
|
)
|
32
|
||||||||
Other
comprehensive gain (loss)
|
$
|
1,109
|
$
|
383
|
$
|
(66
|
)
|
$
|
32
|
September
30,
|
December
31,
|
Increase
(decrease)
|
|||||||||||
2007
|
2006
|
Dollars
|
Percentage
|
||||||||||
Assets
|
(Dollars
in Thousands)
|
||||||||||||
Cash
and cash equivalents
|
$
|
49,903
|
$
|
41,057
|
$
|
8,846
|
21.5
|
%
|
|||||
Other
interest earning investments
|
-
|
1,200
|
(1,200
|
)
|
-100.0
|
%
|
|||||||
Securitites
available for sale
|
133,681
|
99,231
|
34,450
|
34.7
|
%
|
||||||||
Loans
|
675,027
|
644,222
|
30,805
|
4.8
|
%
|
||||||||
Allowance
for loan losses
|
(5,802
|
)
|
(4,705
|
)
|
(1,097
|
)
|
23.3
|
%
|
|||||
Loans,
net
|
669,225
|
639,517
|
29,708
|
4.6
|
%
|
||||||||
Loans
held for sale
|
1,228
|
4,365
|
(3,137
|
)
|
-71.9
|
%
|
|||||||
Other
assets
|
61,711
|
57,709
|
4,002
|
6.9
|
%
|
||||||||
Total
assets
|
$
|
915,748
|
$
|
843,079
|
$
|
72,669
|
8.6
|
%
|
|||||
Liabilities
and Stockholders' equity Deposits
|
|||||||||||||
Non-interest
bearing
|
$
|
41,468
|
$
|
38,301
|
$
|
3,167
|
8.3
|
%
|
|||||
Interest
bearing transaction accounts
|
49,633
|
52,895
|
(3,262
|
)
|
-6.2
|
%
|
|||||||
Savings
and money market
|
209,286
|
158,229
|
51,057
|
32.3
|
%
|
||||||||
Time
|
297,626
|
323,627
|
(26,001
|
)
|
-8.0
|
%
|
|||||||
Total
deposits
|
598,013
|
573,052
|
24,961
|
4.4
|
%
|
||||||||
Federal
Home Loan Bank advances
|
156,000
|
144,000
|
12,000
|
8.3
|
%
|
||||||||
Securities
sold under agreements to repurchase
|
63,500
|
29,000
|
34,500
|
119.0
|
%
|
||||||||
Accrued
expenses and other liabilities
|
7,442
|
5,940
|
1,502
|
25.3
|
%
|
||||||||
Total
liabilities
|
824,955
|
751,992
|
72,963
|
9.7
|
%
|
||||||||
Stockholders'
equity
|
90,793
|
91,087
|
(294
|
)
|
-0.3
|
%
|
|||||||
Total
liabilities and stockholders' equity
|
$
|
915,748
|
$
|
843,079
|
$
|
72,669
|
8.6
|
%
|
September
30,
2007
|
%
of total
loans
|
December
31,
2006
|
%
of total
loans
|
||||||||||
(Dollars
In Thousands)
|
|||||||||||||
Real
estate loans:
|
|||||||||||||
One-to-four
family
|
$
|
342,401
|
51.0
|
%
|
$
|
334,000
|
52.2
|
%
|
|||||
Commercial
|
73,532
|
11.0
|
%
|
60,912
|
9.5
|
%
|
|||||||
Other
( Land & Multifamily)
|
40,737
|
6.1
|
%
|
34,446
|
5.4
|
%
|
|||||||
Total
real estate loans
|
456,670
|
68.1
|
%
|
429,358
|
67.1
|
%
|
|||||||
Construction
loans:
|
|||||||||||||
One-to-four
family
|
16,051
|
2.4
|
%
|
32,467
|
5.1
|
%
|
|||||||
Commercial
|
9,704
|
1.4
|
%
|
2,862
|
0.4
|
%
|
|||||||
Acquisition
and development
|
3,332
|
0.5
|
%
|
2,103
|
0.3
|
%
|
|||||||
Total
real estate construction loans
|
29,087
|
4.3
|
%
|
37,432
|
5.8
|
%
|
|||||||
Other
loans:
|
|||||||||||||
Home
equity
|
100,354
|
14.9
|
%
|
91,062
|
14.2
|
%
|
|||||||
Consumer
|
65,551
|
9.8
|
%
|
63,630
|
9.9
|
%
|
|||||||
Commercial
|
19,807
|
2.9
|
%
|
19,044
|
3.0
|
%
|
|||||||
Total
other loans
|
185,712
|
27.6
|
%
|
173,736
|
27.1
|
%
|
|||||||
Total
loans
|
671,469
|
100
|
%
|
640,526
|
100
|
%
|
|||||||
Allowance
for loan losses
|
(5,802
|
)
|
(4,705
|
)
|
|||||||||
Net
deferred loan costs
|
3,366
|
3,348
|
|||||||||||
Premiums
on purchased loans
|
192
|
348
|
|||||||||||
Loans,
net
|
$
|
669,225
|
$
|
639,517
|
|||||||||
At
September 30,
|
|||||||
2007
|
2006
|
||||||
(Dollars
in Thousands)
|
|||||||
Beginning
balance
|
$
|
4,705
|
$
|
4,587
|
|||
Loans
charged-off
|
(1,642
|
)
|
(946
|
)
|
|||
Recoveries
|
1,496
|
674
|
|||||
Net
charge-offs
|
(146
|
)
|
(272
|
)
|
|||
Provision
for loan losses
|
1,243
|
183
|
|||||
Ending
balance
|
$
|
5,802
|
$
|
4,498
|
For the three months ended September 30,
|
|||||||||||||||||||
2007
|
2006
|
||||||||||||||||||
(Dollars in Thousands)
|
|||||||||||||||||||
Average
Balance
|
Interest
|
Average Yield
/Cost
|
Average
Balance
|
Interest
|
Average Yield
/Cost
|
||||||||||||||
INTEREST-EARNING ASSETS
|
|||||||||||||||||||
Loans
receivable(1)
|
$
|
678,350
|
$
|
11,927
|
7.03
|
%
|
$
|
623,667
|
$
|
10,612
|
6.81
|
%
|
|||||||
Securites(2)
|
130,943
|
1,786
|
5.46
|
%
|
74,461
|
948
|
5.09
|
%
|
|||||||||||
Other
interest-earning assets(3)
|
40,681
|
550
|
5.41
|
%
|
33,005
|
446
|
5.41
|
%
|
|||||||||||
Total
interest-earning assets
|
849,974
|
14,263
|
6.72
|
%
|
731,133
|
12,006
|
6.56
|
%
|
|||||||||||
Non-interest
earning assets
|
54,887
|
50,682
|
|||||||||||||||||
Total
assets
|
$
|
904,861
|
$
|
781,815
|
|||||||||||||||
INTEREST-BEARING
LIABILITIES
|
|||||||||||||||||||
Savings
deposits
|
$
|
39,207
|
$
|
37
|
0.38
|
%
|
$
|
47,744
|
$
|
47
|
0.39
|
%
|
|||||||
Interest
bearing demand accounts
|
48,895
|
372
|
3.04
|
%
|
51,193
|
382
|
2.98
|
%
|
|||||||||||
Money
market accounts
|
173,905
|
2,015
|
4.63
|
%
|
83,651
|
867
|
4.15
|
%
|
|||||||||||
Time
deposits
|
293,145
|
3,705
|
5.06
|
%
|
321,622
|
3,631
|
4.52
|
%
|
|||||||||||
Federal
Home Loan Bank advances
|
149,109
|
1,671
|
4.48
|
%
|
123,565
|
1,382
|
4.47
|
%
|
|||||||||||
Securities
sold under agreements to repurchase
|
63,500
|
733
|
4.62
|
%
|
12,000
|
139
|
4.63
|
%
|
|||||||||||
Total
interest-bearing liabilities
|
767,761
|
8,533
|
4.44
|
%
|
639,775
|
6,448
|
4.04
|
%
|
|||||||||||
Non-interest
bearing liabilities
|
46,224
|
47,765
|
|||||||||||||||||
Total
liabilities
|
813,985
|
687,540
|
|||||||||||||||||
Stockholders'
equity
|
90,876
|
94,275
|
|||||||||||||||||
Total
liabilities and stockholders' equity
|
$
|
904,861
|
$
|
781,815
|
|||||||||||||||
Net
interest income
|
$
|
5,730
|
$
|
5,558
|
|||||||||||||||
Net
interest spread
|
2.28
|
%
|
2.52
|
%
|
|||||||||||||||
Net
earning assets
|
$
|
82,213
|
$
|
91,358
|
|||||||||||||||
Net
interest margin(4)
|
2.70
|
%
|
3.04
|
%
|
|||||||||||||||
Average
interest-earning assets to average interest-bearing
liabilities
|
110.71
|
%
|
114.28
|
%
|
Increase/(Decrease)
|
Total
|
|||||||||
Due
to
|
Increase
|
|||||||||
Volume
|
Rate
|
(Decrease)
|
||||||||
|
(Dollars
in Thousands)
|
|||||||||
INTEREST-EARNING
ASSETS
|
||||||||||
Loans
receivable
|
$
|
953
|
$ | 361 |
$
|
1,314
|
||||
Securities
|
766
|
73 |
839
|
|||||||
Other
interest-earning assets
|
104
|
- |
104
|
|||||||
Total
interest-earning assets
|
1,823
|
434 |
2,257
|
|||||||
INTEREST-BEARING
LIABILITIES
|
||||||||||
Savings
deposits
|
(8
|
)
|
(2 | ) |
(10
|
)
|
||||
Interest
bearing demand accounts
|
(17
|
)
|
7 |
(10
|
)
|
|||||
Money
market accounts
|
1,035
|
113 |
1,148
|
|||||||
Time
deposits
|
(338
|
)
|
413 |
75
|
||||||
Federal
Home Loan Bank advances
|
286
|
2 |
288
|
|||||||
Securities
sold under agreements to repurchase
|
594
|
- |
594
|
|||||||
Total
interest-bearing liabilities
|
1,552
|
533 |
2,085
|
|||||||
Net
interest income
|
$
|
271
|
$ | (99 | ) |
$
|
172
|
Increase(decrease)
|
|||||||||||||
2007
|
2006
|
Dollars
|
Percentage
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Service
charges and fees
|
$
|
1,326
|
$
|
1,516
|
$
|
(190
|
)
|
-12.5
|
%
|
||||
Gain
on sale of real estate mortgages held for sale
|
11
|
35
|
(24
|
)
|
-68.6
|
%
|
|||||||
Loss
on sale of foreclosed assets
|
(116
|
)
|
(5
|
)
|
(111
|
)
|
2220.0
|
%
|
|||||
Commission
income
|
85
|
90
|
(5
|
)
|
-5.6
|
%
|
|||||||
Interchange
fees
|
229
|
193
|
36
|
18.7
|
%
|
||||||||
Bank
owned life insurance earnings
|
211
|
214
|
(3
|
)
|
-1.4
|
%
|
|||||||
Other
|
(232
|
)
|
(80
|
)
|
(152
|
)
|
190.0
|
%
|
|||||
Total
|
$
|
1,514
|
$
|
1,963
|
$
|
(449
|
)
|
-22.9
|
%
|
Increase(decrease)
|
|||||||||||||
2007
|
2006
|
Dollars
|
Percentage
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Compensation
and benefits
|
$
|
3,147
|
$
|
2,805
|
$
|
342
|
12.2
|
%
|
|||||
Occupancy
and equipment
|
595
|
612
|
(17
|
)
|
-2.8
|
%
|
|||||||
Data
processing
|
234
|
329
|
(95
|
)
|
-28.9
|
%
|
|||||||
Advertising
|
123
|
201
|
(78
|
)
|
-38.8
|
%
|
|||||||
Outside
professional services
|
456
|
367
|
89
|
24.3
|
%
|
||||||||
Interchange
charges
|
104
|
92
|
12
|
13.0
|
%
|
||||||||
Collection
expense and repossessed asset losses
|
59
|
55
|
4
|
7.3
|
%
|
||||||||
Telephone
|
122
|
116
|
6
|
5.2
|
%
|
||||||||
Other
|
830
|
826
|
4
|
0.5
|
%
|
||||||||
Total
|
$
|
5,670
|
$
|
5,403
|
$
|
267
|
4.9
|
%
|
For
the nine months ended September
30,
|
|||||||||||||||||||
2007
|
2006
|
||||||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield /
Cost
|
Average
Balance
|
Interest
|
Average
Yield /
Cost
|
||||||||||||||
INTEREST-EARNING
ASSETS
|
|||||||||||||||||||
Loans
receivable(1)
|
$
|
661,848
|
$
|
34,459
|
6.94
|
%
|
$
|
611,139
|
$
|
30,015
|
6.55
|
%
|
|||||||
Securites(2)
|
124,429
|
5,018
|
5.38
|
%
|
71,481
|
2,447
|
4.56
|
%
|
|||||||||||
Other
interest-earning assets(3)
|
44,701
|
1,808
|
5.39
|
%
|
31,816
|
1,215
|
5.09
|
%
|
|||||||||||
Total
interest-earning assets
|
830,978
|
41,285
|
6.63
|
%
|
714,436
|
33,677
|
6.28
|
%
|
|||||||||||
Non-interest
earning assets
|
54,330
|
52,166
|
|||||||||||||||||
Total
assets
|
$
|
885,308
|
$
|
766,602
|
|||||||||||||||
INTEREST-BEARING
LIABILITIES
|
|||||||||||||||||||
Savings
deposits
|
$
|
40,756
|
$
|
120
|
0.39
|
%
|
$
|
50,979
|
$
|
152
|
0.40
|
%
|
|||||||
Interest
bearing demand accounts
|
50,731
|
1,160
|
3.05
|
%
|
61,281
|
1,182
|
2.57
|
%
|
|||||||||||
Money
market accounts
|
154,403
|
5,340
|
4.61
|
%
|
68,426
|
1,902
|
3.71
|
%
|
|||||||||||
Time
deposits
|
303,085
|
11,324
|
4.98
|
%
|
309,952
|
9,791
|
4.21
|
%
|
|||||||||||
Federal
Home Loan Bank advances
|
144,918
|
4,879
|
4.49
|
%
|
125,192
|
4,099
|
4.37
|
%
|
|||||||||||
Securities
sold under agreements to repurchase
|
53,808
|
1,841
|
4.56
|
%
|
9,678
|
333
|
4.59
|
%
|
|||||||||||
Total
interest-bearing liabilities
|
747,701
|
24,664
|
4.40
|
%
|
625,508
|
17,459
|
3.72
|
%
|
|||||||||||
Non-interest
bearing liabilities
|
46,437
|
47,009
|
|||||||||||||||||
Total
liabilities
|
794,138
|
672,517
|
|||||||||||||||||
Stockholders'
equity
|
91,170
|
94,085
|
|||||||||||||||||
Total
liabilities and stockholders' equity
|
$
|
885,308
|
$
|
766,602
|
|||||||||||||||
Net
interest income
|
$
|
16,621
|
$
|
16,218
|
|||||||||||||||
Net
interest spread
|
2.23
|
%
|
2.56
|
%
|
|||||||||||||||
Net
earning assets
|
$
|
83,277
|
$
|
88,928
|
|||||||||||||||
Net
interest margin(4)
|
2.67
|
%
|
3.03
|
%
|
|||||||||||||||
Average
interest-earning assets to average interest-bearing
liabilities
|
111.14
|
%
|
114.22
|
%
|
|||||||||||||||
(1) Calculated net of deferred loan fees and loss reserve. Nonaccrual loans included as loans carrying a zero yield(2) Calculated based on carrying value. Not full tax equivalents, as the numbers would not change materially from those presented in the table.(3) Includes Federal Home Loan Bank stock at cost and term deposits with other financial institutions.(4) Net interest income divided by average interest-earning assets.
Increase/(Decrease)
|
Total
|
|||||||||
Due
to
|
Increase
|
|||||||||
Volume
|
Rate
|
(Decrease)
|
||||||||
|
(Dollars
in Thousands)
|
|||||||||
INTEREST-EARNING
ASSETS
|
||||||||||
Loans
receivable
|
$
|
2,577
|
$
|
1,867
|
$
|
4,444
|
||||
Securities
|
2,073
|
499
|
2,572
|
|||||||
Other
interest-earning assets
|
517
|
75
|
592
|
|||||||
Total
interest-earning assets
|
5,167
|
2,441
|
7,608
|
|||||||
INTEREST-BEARING
LIABILITIES
|
||||||||||
Savings
deposits
|
(30
|
)
|
(2
|
)
|
(32
|
)
|
||||
Interest
bearing demand accounts
|
(222
|
)
|
199
|
(23
|
)
|
|||||
Money
market accounts
|
2,878
|
560
|
3,438
|
|||||||
Time
deposits
|
(221
|
)
|
1,754
|
1,533
|
||||||
Federal
Home Loan Bank advances
|
661
|
120
|
781
|
|||||||
Securities
sold under agreements to repurchase
|
1,510
|
(2
|
)
|
1,508
|
||||||
Total
interest-bearing liabilities
|
4,576
|
2,629
|
7,205
|
|||||||
Net
interest income
|
$
|
591
|
$
|
(188
|
)
|
$
|
403
|
Increase(decrease)
|
|||||||||||||
2007
|
2006
|
Dollars
|
Percentage
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Service
charges and fees
|
$
|
3,866
|
$
|
4,360
|
$
|
(494
|
)
|
-11.3
|
%
|
||||
Net
loss on available for sale securities
|
(46
|
)
|
(165
|
)
|
119
|
-72.1
|
%
|
||||||
Gain
on sale of real estate mortgages held for
sale
|
26
|
51
|
(25
|
)
|
-49.0
|
%
|
|||||||
Loss
on sale of foreclosed assets
|
(114
|
)
|
(10
|
)
|
(104
|
)
|
1040.0
|
%
|
|||||
Commission
income
|
222
|
239
|
(17
|
)
|
-7.1
|
%
|
|||||||
Interchange
fees
|
672
|
588
|
84
|
14.3
|
%
|
||||||||
Bank
owned life insurance earnings
|
639
|
629
|
10
|
1.6
|
%
|
||||||||
Other
|
137
|
348
|
(211
|
)
|
-60.6
|
%
|
|||||||
Total
|
$
|
5,402
|
$
|
6,040
|
$
|
(638
|
)
|
-10.6
|
%
|
Increase(decrease)
|
|||||||||||||
2007
|
2006
|
Dollars
|
Percentage
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Compensation
and benefits
|
$
|
9,317
|
$
|
8,049
|
$
|
1,268
|
15.8
|
%
|
|||||
Occupancy
and equipment
|
1,787
|
1,609
|
178
|
11.1
|
%
|
||||||||
Data
processing
|
838
|
1,134
|
(296
|
)
|
-26.1
|
%
|
|||||||
Advertising
|
420
|
631
|
(211
|
)
|
-33.4
|
%
|
|||||||
Outside
professional services
|
1,828
|
1,317
|
511
|
38.8
|
%
|
||||||||
Interchange
charges
|
297
|
420
|
(123
|
)
|
-29.3
|
%
|
|||||||
Collection
expense and repossessed asset losses
|
192
|
218
|
(26
|
)
|
-11.9
|
%
|
|||||||
Telephone
|
348
|
359
|
(11
|
)
|
-3.1
|
%
|
|||||||
Other
|
2,562
|
2,154
|
408
|
18.9
|
%
|
||||||||
Total
|
$
|
17,589
|
$
|
15,891
|
$
|
1,698
|
10.7
|
%
|
Economic
Value of Equity
|
|||||||||||||||||||
and
Duration of Assets and Liabilities at September 30, 2007
|
|||||||||||||||||||
Change
in Interest Rate
|
|||||||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Decrease
|
Decrease
|
Decrease
|
Increase
|
Increase
|
Increase
|
||||||||||||||
3%
|
2%
|
1%
|
1%
|
2%
|
3%
|
||||||||||||||
Duration
of assets(1)
|
2.27
|
2.27
|
2.34
|
2.38
|
2.37
|
2.37
|
|||||||||||||
Duration
of liabilities(1)
|
2.32
|
2.32
|
2.32
|
2.29
|
2.27
|
2.27
|
|||||||||||||
Differential
in duration
|
-0.05
|
-0.05
|
0.02
|
0.09
|
0.10
|
0.10
|
|||||||||||||
Amount
of change in Economic Value of Equity(2)
|
$
|
(1,278
|
)
|
$
|
(852
|
)
|
$
|
179
|
$
|
(817
|
)
|
$
|
(1,959
|
)
|
$
|
(2,938
|
)
|
||
Percentage
change in Economic Value of Equity(2)
|
-1.32
|
%
|
-0.88
|
%
|
0.19
|
%
|
-0.85
|
%
|
-2.03
|
%
|
-3.05
|
%
|
Item1. |
Legal
Proceedings
|
Item 1A. |
Risk
Factors
|
Item 2. |
Unregistered
Sales of Equity Securities and Use of Proceeds
|
Period
|
Total Number of
Shares Purchased
|
Average Price
Paid per
Share
|
Total Number of
Shares Purchased
as Part of
Publicly
Announced Plans
or Programs
|
Maximum
Number of
Shares that May
Yet Be Purchased
Under the Plans
or Programs
|
|||||||||
July
1, 2007 through July 31, 2007
|
-
|
-
|
-
|
182,646
|
|||||||||
August
1, 2007 through August 31, 2007
|
-
|
-
|
-
|
182,646
|
|||||||||
September
1, 2007 through september 30, 2007
|
-
|
-
|
-
|
182,646
|
|||||||||
Total
|
-
|
$
|
-
|
-
|
182,646
|
Item 3. |
Defaults
Upon Senior Securities
|
Item 4. |
Submission
of Matters to a Vote of Security
Holders
|
Item 5. |
Other
Information
|
Item 6. |
Exhibits
|
a. |
Exhibits
|
31.1 |
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
31.2 |
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
32. |
Certification
of Chief Executive Officer and Chief Financial Officer of Atlantic
Coast
Federal Corporation pursuant to Section
906
|
ATLANTIC
COAST FEDERAL CORPORATION
|
|
(Registrant)
|
|
Date:
November 14, 2007
|
/s/
Robert J. Larison, Jr
|
Robert
J. Larison, Jr., President and Chief
|
|
Executive
Officer
|
|
Date:
November 14, 2007
|
/s/
Dawna R. Miller
|
Dawna
R. Miller, Senior Vice President and
|
|
Chief
Financial Officer
|