Atlantic Coast Federal Corp. (ACFC, Financial) filed Quarterly Report for the period ended 2010-09-30.
Atlantic Coast Federal Corp. has a market cap of $16.5 million; its shares were traded at around $1.23 with and P/S ratio of 0.31.
General. Total assets decreased $13.0 million to $892.6 million at June 30, 2010 as compared to $905.6 million at December 31, 2009. The primary reason for the decrease in assets was a decrease in net loans of $38.6 million as well as a decrease in cash of $15.5 million, partially offset by the increase in loans held for sale of $40.6 million. Total deposits increased $14.9 million to $570.4 million at September 30, 2010 from $555.4 million at December 31, 2009. Core deposits grew by $16.0 million, while time deposits decreased by $1.0 million.
Securities available for sale. Securities available for sale is comprised primarily of debt securities of U.S. Government-sponsored enterprises and mortgage-backed securities (MBS). The investment portfolio decreased approximately $1.4 million to $176.5 million at September 30, 2010, from $177.9 million at December 31, 2009. We recognized a charge for other-than-temporary impairment (OTTI) of approximately $(81,000) in non-interest income (loss) on two private label collateralized mortgage obligation mezzanine (support) debt securities for the nine months ended September 30, 2010. In order to reduce risk of additional OTTI charges the Company sold six securities totaling $3.4 million at a loss of $1.3 million during the third quarter ended September 30, 2010.
Loans. Portfolio loans declined approximately 6.3% to $575.8 million at June 30, 2010 as compared to $614.4 million at December 31, 2009 due to increased payoffs of one- to four-family residential loans in the first nine months of 2010, the sale of approximately $7.2 million of non-performing loans in the first nine months of 2010, and the transfer of $6.4 million from portfolio loans to loans held for sale.
Total loan originations increased $168.2 million to $267.1 million for the nine months ended September 30, 2010 from $98.9 million for the same period in 2009. Origination of loans held for sale in the secondary market increased $144.9 million to $214.0 million during the first nine months of 2010, from $69.2 million for the same period in 2009. Portfolio loan production increased $23.3 million to $53.0 million for the nine months ended September 30, 2010 from $29.7 million for the same period in 2009. Origination of residential loans held for sale was strong as consumers took advantage of historically low interest rates and the availability of certain federal income tax credits. The balance of loans held for sale increased as the Company began to expand its mortgage lending business during the third quarter of 2010.
Allowance for loan losses. The allowance for loan losses was $11.0 million, or 1.87% of total loans compared to $13.8 million or 2.22% of total loans outstanding at September 30, 2010 and December 31, 2009, respectively.
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Atlantic Coast Federal Corp. has a market cap of $16.5 million; its shares were traded at around $1.23 with and P/S ratio of 0.31.
Highlight of Business Operations:
When OTTI is determined to have occurred, the amount of the OTTI recognized in earnings depends on whether we intend to sell the security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If we intend to sell the security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI recognized in earnings is equal to the entire difference between its amortized cost basis and its fair value at the balance sheet date. If we do not intend to sell the security and it is not more likely than not that we will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI is separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized as a charge to earnings. The amount of the OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. The Company recorded an other-than-temporary impairment charge of $81,000 in non-interest income on two private label mortgage-backed mezzanine (support) debt securities for the nine months ended September 30, 2010. The Company recorded an other-than-temporary impairment charge of $1.6 million for the nine months ended September 30, 2009.General. Total assets decreased $13.0 million to $892.6 million at June 30, 2010 as compared to $905.6 million at December 31, 2009. The primary reason for the decrease in assets was a decrease in net loans of $38.6 million as well as a decrease in cash of $15.5 million, partially offset by the increase in loans held for sale of $40.6 million. Total deposits increased $14.9 million to $570.4 million at September 30, 2010 from $555.4 million at December 31, 2009. Core deposits grew by $16.0 million, while time deposits decreased by $1.0 million.
Securities available for sale. Securities available for sale is comprised primarily of debt securities of U.S. Government-sponsored enterprises and mortgage-backed securities (MBS). The investment portfolio decreased approximately $1.4 million to $176.5 million at September 30, 2010, from $177.9 million at December 31, 2009. We recognized a charge for other-than-temporary impairment (OTTI) of approximately $(81,000) in non-interest income (loss) on two private label collateralized mortgage obligation mezzanine (support) debt securities for the nine months ended September 30, 2010. In order to reduce risk of additional OTTI charges the Company sold six securities totaling $3.4 million at a loss of $1.3 million during the third quarter ended September 30, 2010.
Loans. Portfolio loans declined approximately 6.3% to $575.8 million at June 30, 2010 as compared to $614.4 million at December 31, 2009 due to increased payoffs of one- to four-family residential loans in the first nine months of 2010, the sale of approximately $7.2 million of non-performing loans in the first nine months of 2010, and the transfer of $6.4 million from portfolio loans to loans held for sale.
Total loan originations increased $168.2 million to $267.1 million for the nine months ended September 30, 2010 from $98.9 million for the same period in 2009. Origination of loans held for sale in the secondary market increased $144.9 million to $214.0 million during the first nine months of 2010, from $69.2 million for the same period in 2009. Portfolio loan production increased $23.3 million to $53.0 million for the nine months ended September 30, 2010 from $29.7 million for the same period in 2009. Origination of residential loans held for sale was strong as consumers took advantage of historically low interest rates and the availability of certain federal income tax credits. The balance of loans held for sale increased as the Company began to expand its mortgage lending business during the third quarter of 2010.
Allowance for loan losses. The allowance for loan losses was $11.0 million, or 1.87% of total loans compared to $13.8 million or 2.22% of total loans outstanding at September 30, 2010 and December 31, 2009, respectively.
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