Converted CU Postpones Second-Step Offering

WAYCROSS, Ga. – Atlantic Coast Bank, the former credit union shedding its mutual structure, postponed its planned second-step stock offering yesterday as its stock price continued to slide. The company, which was formerly Atlantic Coast FCU, halted its planned $200 million offering as its shares fell 6% yesterday to $12.65, down 18% since the June 29 announcement of the offering. The ex-credit union, which went public in 2004, is conducting the second step of a two-step process in which it first sold a minority of shares to the public, and will now float a majority of shares on the stock market. Robert Larison, the president and CEO, who engineered the conversion from credit union, said they will undergo the second step offering when market conditions are more stable, possibly in the fourth quarter, or the first quarter of 2008.