Atlantic Coast Financial in Jacksonville, Fla., is in talks to restructure its debt and has reversed the valuation allowance on a deferred tax asset.
The $744 million-asset company said it "is in the process of negotiating revisions" to the terms of some of its wholesale debt,
Combined, the two transactions are expected to save between $4.5 million and $5 million in yearly interest expense. The two transactions are expected to close today.
Prepayment penalties associated with both transactions are expected to offset the gain from the reversal of Atlantic Coast's valuation allowance.
Atlantic Coast in March was