Atlantic Coast Financial CORP

CIK:0001404296|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest and dividend income:
Loans, including fees	$ 8,846	$ 7,469
Securities and interest-earning deposits in other financial institutions	408	419
Total interest and dividend income	9,254	7,888
Interest expense:
Deposits	1,438	1,088
Federal Home Loan Bank advances	688	428
Total interest expense	2,126	1,516
Net interest income	7,128	6,372
Provision for portfolio loan losses	168	100
Net interest income after provision for portfolio loan losses	6,960	6,272
Noninterest income:
Service charges and fees	405	434
Gain (loss) on sale of loans held-for-sale	(52)	1,542
Bank owned life insurance earnings	115	117
Interchange fees	341	329
Other	427	139
Total noninterest income	1,236	2,561
Noninterest expense:
Compensation and benefits	3,600	3,487
Occupancy and equipment	585	555
Federal Deposit Insurance Corporation insurance premiums	83	135
Foreclosed assets, net	(48)	80
Data processing	582	611
Outside professional services	513	537
Collection expense and repossessed asset losses	57	139
Merger-related costs	233	0
Other	745	1,006
Total noninterest expense	6,350	6,550
Income before income tax expense	1,846	2,283
Income tax expense	430	806
Net income	$ 1,416	$ 1,477
Earnings per common share:
Basic (in dollars per share)	$ 0.09	$ 0.1
Diluted (in dollars per share)	$ 0.09	$ 0.1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 1,416	$ 1,477
Adjustments to reconcile net income to net cash from operating activities:
Provision for portfolio loan losses	168	100
Loss (gain) on sale of loans held-for-sale	52	(1,542)
Originations of loans held-for-sale	(6,649)	(16,068)
Proceeds from sales of loans held-for-sale	3,531	22,242
Foreclosed assets, net	(48)	80
Employee stock ownership plan compensation expense	(9)	9
Restricted stock awards	0	1
Share-based compensation expense	13	0
Amortization of premiums and deferred fees, net of accretion of discounts on investment securities and loans	299	(15)
Depreciation expense	227	291
Deferred tax expense (benefit)	(47)	129
Net change in cash surrender value of bank owned life insurance	(115)	(117)
Net change in accrued interest receivable	136	238
Net change in other assets	447	(166)
Net change in accrued expenses and other liabilities	16	1,422
Net cash provided by (used in) operating activities	(563)	8,081
Cash flows from investing activities:
Proceeds from maturities and payments of investment securities	1,060	21,276
Purchase of securities available-for-sale	0	(56,529)
Funding of warehouse loans held-for-investment	(194,218)	(257,641)
Proceeds from repayments of warehouse loans held-for-investment	246,834	280,100
Purchase of portfolio loans	0	(15,872)
Net change in portfolio loans	337	(26,086)
Purchase of premises and equipment	(3)	(80)
Proceeds from sale of other real estate owned	88	0
Purchase of Federal Home Loan Bank stock	(5,371)	(3,631)
Redemption of Federal Home Loan Bank stock	6,201	5,482
Net cash provided by (used in) investing activities	54,928	(52,981)
Cash flows from financing activities:
Net change in deposits	(35,108)	57,425
Proceeds from Federal Home Loan Bank advances	392,700	85,000
Repayment of Federal Home Loan Bank advances	(413,850)	(129,666)
Shares purchased for and distributions from Rabbi Trust	0	2
Net cash provided by (used in) financing activities	(56,258)	12,761
Net decrease in cash and cash equivalents	(1,893)	(32,139)
Cash and cash equivalents, beginning of period	50,409	59,893
Cash and cash equivalents, end of period	48,516	27,754
Supplemental disclosures of cash flow information:
Interest paid	2,183	1,516
Income taxes paid	0	0
Supplemental disclosures of non-cash information:
Loans transferred to held-for-sale	279	0
Loans transferred to portfolio	894	409
Income tax expense (benefit) from unrealized holding gains and losses on securities available-for-sale arising during the period	$ (102)	$ 214

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Cash and due from financial institutions	$ 4,434	$ 3,432
Short-term interest-earning deposits	44,082	46,977
Total cash and cash equivalents	48,516	50,409
Securities available-for-sale	36,182	37,683
Portfolio loans, net of allowance of $8,600 in 2018 and $8,600 in 2017	757,361	757,506
Other loans:
Held-for-sale	6,062	3,623
Warehouse loans held-for-investment	29,071	81,687
Total other loans	35,133	85,310
Federal Home Loan Bank stock, at cost	9,062	9,892
Land, premises and equipment, net	13,948	14,172
Bank owned life insurance	18,120	18,005
Other real estate owned	1,699	1,739
Accrued interest receivable	2,131	2,267
Deferred tax assets, net	4,257	4,108
Other assets	1,730	2,165
Total assets	928,139	983,256
Deposits:
Noninterest-bearing demand	70,038	63,852
Interest-bearing demand	100,565	97,350
Savings and money market	265,411	294,674
Time	204,681	219,927
Total deposits	640,695	675,803
Federal Home Loan Bank advances	192,375	213,525
Accrued expenses and other liabilities	3,284	3,268
Total liabilities	836,354	892,596
Commitments and contingent liabilities
Stockholders’ equity:
Preferred stock: $0.01 par value; 25,000,000 shares authorized; none issued and outstanding at March 31, 2018 and December 31, 2017	0	0
Common stock: $0.01 par value; 100,000,000 shares authorized; 15,552,833 issued and outstanding at March 31, 2018 and 15,553,709 issued and outstanding at December 31, 2017	156	156
Additional paid-in capital	100,392	100,443
Common stock held by:
Employee stock ownership plan shares of 61,080 at March 31, 2018 and 62,277 at December 31, 2017	(1,353)	(1,353)
Benefit plans	(56)	(111)
Retained deficit	(5,621)	(7,037)
Accumulated other comprehensive loss	(1,733)	(1,438)
Total stockholders’ equity	91,785	90,660
Total liabilities and stockholders’ equity	$ 928,139	$ 983,256