Atlantic BancGroup Inc. (ATBC, Financial) filed Quarterly Report for the period ended 2009-03-31.
ATLANTIC BANCGROUP INC. operates as the bank holding company for the Oceanside Bank which provides commercial banking services to businesses and individuals located primarily in east Duval and northeast St. Johns counties of Florida. It accepts various deposit products such as savings accounts demand deposits negotiable order of withdrawal accounts money market deposit accounts and certificates of deposits. Atlantic BancGroup Inc. has a market cap of $7.5 million; its shares were traded at around $6 with and P/S ratio of 0.4. Atlantic BancGroup Inc. had an annual average earning growth of 11.6% over the past 5 years.
Core Deposits. Core deposits, which exclude certificates of deposit of $100,000 or more, provide a relatively stable funding source for our loan portfolio and other earning assets. We had core deposits totaling $197.2 million at March 31, 2009, and $188.1 million at December 31, 2008, an increase of 4.9%. We anticipate that a stable base of deposits will be our primary source of funding to meet both short-term and long-term liquidity needs in the future.
Customers with large certificates of deposit tend to be extremely sensitive to interest rate levels, making these deposits less reliable sources of funding for liquidity planning purposes than core deposits. Some financial institutions acquire funds in part through large certificates of deposit obtained through brokers. These brokered deposits have been historically expensive and unreliable as long-term funding sources. More recently, the brokered funds have become less expensive than local deposits. Brokered certificates of deposit issued by us totaled $30.3 million at March 31, 2009, and $26.3 million at December 31, 2008, an increase of 15.2%. The increase in brokered deposits resulted from a $5.0 million acquisition at the end of March 2009, for the purpose of providing liquidity to repay $7.0 million in brokered deposits maturing in April 2009.
We use our resources principally to fund existing and continuing loan commitments and to purchase investment securities. At March 31, 2009, we had commitments to extend credit totaling $13.1 million, and had issued, but unused, standby letters of credit of $1.7 million for the same period. In addition, scheduled maturities of certificates of deposit during the twelve months following March 31, 2009, total $103.7 million. We believe that adequate resources exist to fund all our anticipated commitments, and, if so desired, that we can adjust the rates and terms on certificates of deposit and other deposit accounts to retain deposits in a changing interest rate environment.
At March 31, 2009, we had 45 loans totaling approximately $23.2 million classified as substandard and three loans totaling approximately $3.3 million classified as doubtful. We had no loans classified as loss at March 31, 2008. At March 31, 2009, management had provided specific reserves totaling $1.5 million for loans risk-rated substandard or lower.
Our internally-classified loans declined $2.0 million from December 31, 2008, levels of $28.5 million. We also reported a net decline in total nonperforming assets of $913,000, or 8.6%, principally from sales of other real estate owned that resulted in a net loss of $61,000 for the quarter ended March 31, 2009.
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ATLANTIC BANCGROUP INC. operates as the bank holding company for the Oceanside Bank which provides commercial banking services to businesses and individuals located primarily in east Duval and northeast St. Johns counties of Florida. It accepts various deposit products such as savings accounts demand deposits negotiable order of withdrawal accounts money market deposit accounts and certificates of deposits. Atlantic BancGroup Inc. has a market cap of $7.5 million; its shares were traded at around $6 with and P/S ratio of 0.4. Atlantic BancGroup Inc. had an annual average earning growth of 11.6% over the past 5 years.
Highlight of Business Operations:
Our net loss for the three months ended March 31, 2009, after recording a loss of $112,000 on restricted stock (net of income tax benefit), was $68,000, as compared with net income of $47,000, as reported in the same period of 2008. Average earning assets remained steady for the first three months of 2009 versus the same period of 2008. An overview of the more significant matters affecting our results of operations follows:Core Deposits. Core deposits, which exclude certificates of deposit of $100,000 or more, provide a relatively stable funding source for our loan portfolio and other earning assets. We had core deposits totaling $197.2 million at March 31, 2009, and $188.1 million at December 31, 2008, an increase of 4.9%. We anticipate that a stable base of deposits will be our primary source of funding to meet both short-term and long-term liquidity needs in the future.
Customers with large certificates of deposit tend to be extremely sensitive to interest rate levels, making these deposits less reliable sources of funding for liquidity planning purposes than core deposits. Some financial institutions acquire funds in part through large certificates of deposit obtained through brokers. These brokered deposits have been historically expensive and unreliable as long-term funding sources. More recently, the brokered funds have become less expensive than local deposits. Brokered certificates of deposit issued by us totaled $30.3 million at March 31, 2009, and $26.3 million at December 31, 2008, an increase of 15.2%. The increase in brokered deposits resulted from a $5.0 million acquisition at the end of March 2009, for the purpose of providing liquidity to repay $7.0 million in brokered deposits maturing in April 2009.
We use our resources principally to fund existing and continuing loan commitments and to purchase investment securities. At March 31, 2009, we had commitments to extend credit totaling $13.1 million, and had issued, but unused, standby letters of credit of $1.7 million for the same period. In addition, scheduled maturities of certificates of deposit during the twelve months following March 31, 2009, total $103.7 million. We believe that adequate resources exist to fund all our anticipated commitments, and, if so desired, that we can adjust the rates and terms on certificates of deposit and other deposit accounts to retain deposits in a changing interest rate environment.
At March 31, 2009, we had 45 loans totaling approximately $23.2 million classified as substandard and three loans totaling approximately $3.3 million classified as doubtful. We had no loans classified as loss at March 31, 2008. At March 31, 2009, management had provided specific reserves totaling $1.5 million for loans risk-rated substandard or lower.
Our internally-classified loans declined $2.0 million from December 31, 2008, levels of $28.5 million. We also reported a net decline in total nonperforming assets of $913,000, or 8.6%, principally from sales of other real estate owned that resulted in a net loss of $61,000 for the quarter ended March 31, 2009.
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