Ex-Credit Union Starts Process of Going Public
Atlantic Coast Federal Corp., a bank holding company known as Atlantic Coast FCU until November 2000, began the process of going public last week by offering stock to depositors at $10 a share. After selling shares to depositors, the credit union-turned-bank will sell shares to the general public.
The credit union convert, which has almost doubled its asset base since converting to a mutual savings bank, plans to use the almost $50 million it hopes to raise in the offering to finance continued expansion.
The proposed offering has garnered a lot of excitement in the market, with almost $100 million of "hot money"' deposited in the first quarter of the year, as speculators have sought to get in on the ground floor of the offering.
Officers and directors of the former credit union have pledged to buy 654,000 shares, 17% of the offering.
The ex-credit union was chartered in 1939 to serve employees of Atlantic Coast Line Railroad.